[vonklaus]

That's how most companies work. The risk diminishes as the company becomes more established and recruiting becomes easier. Houston wrote the prototype himself and became accepted to Y-Combinator on that platform. Before attending he met Ferdowsi and they went through Y-Combinator and iterated on the design and built a great product, they made the viral Digg video and released to a waitlist of +75,000. Before another employee was hired YC was in the cap table and 7 participants had funded in the seed stage (included sequoia).

I am not sure if the group dynamic functions as peers, in that decisions and features and such are developed by discussion and there is mutual respect. However, I think Houston and Ferdowsi are more responsible for DB success than others and thus have a bigger slice of the Cap table.

[kzhahou]

It's typical for the founder to hold 2-5 times as much equity as all employees combined. We can argue risk all day long. I claim this is a severe imbalance, and one day silicon valley workers will wake up to it and demand more for their services.