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Basically, startups started taking more funding, and VCs realized there was more money to be made, so they're squeezing the little guy with terms.

A small startup taking less (or no) funding can 'afford' to give more equity to employees, who are effectively providing the capital (in the form of labor) to the business. Today's startups taking huge amounts of funding AND cheap labor are trying to have it both ways.



Yup, they just realized "hey, why should we pay random engineers millions of dollars on successful exists?".

They never stopped promising them, they just stopped putting any terms in the equity plans that would lead to them.




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