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by s73ver_ 3190 days ago
They're concentrated for reasons. It's highly debatable whether those reasons are "good".

We all take risk. I could find myself working for a company that doesn't make it, or just decides to fire me at a moment's notice. Losing my job and not being able to find another one means I might not be able to feed and house my family. That's real risk. On the other hand, most investors are pretty well off, and can weather a few startups failing. They're likely not going to get to the point where they don't know if they can continue to house their family for the next few months.

1 comments

"they have more so its ok for them to lose some" - is a flawed logic. The reasons are "good" because they incentivize behaviour. An investor is willing to put a chunk of his money into the startup because he can expect a good return, why else would he take risk on people? An employee is not inherently risking to "lose" anything by taking a job, they risk not gaining something for a while if the job goes, but that's different from proactively putting skin in the game.
I'm not saying it's ok for them to lose some, I'm saying that they're not taking on the risk that everyone claims they are. And yes, an employee very much is risking to lose something. If they get fired or the startup goes under, now they face a very real situation where they might not be able to feed or house their family. I highly doubt that these investors are even close to that point.
"If they get fired or the startup goes under, now they face a very real situation where they might not be able to feed or house their family." this is true for all jobs, my point is, unless you are working for free, you arent giving up something that you will lose. Time yes, but thats why you need to make sure you get paid what you think your time is worth.