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Work for a company, create a product, have that product totally flop and all the investors lose their money? Cool, you're still making the same bi-weekly $3000.

That's what a day job gets you.




Sure, you can get fired. But that just means you're not earning any more. You're not losing the money you already had, like the investors did.


Just to continue the analogy, an employee's monetary down side is limited to the amount of their investment, which is $0, modulo ESPPs and such. Investors can be leveraged and end up losing a multiple > 1 of their initial investment.




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