[yardie]

Doesn’t this already happen at most startups. Each round dilutes the founders share and dilutes the shares of existing employees. The VC might have targets like, acquire 10m users or generate $40m in revenue, and that might not be possible with a team of 5.

[lbriner]

That's only if you raise another round and don't have enough equity for the founders to just gives some of theirs. OP is talking about something more automatic for every new hire.