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Startup employees calculated that a) their hard work could change the odds and b) someday the stock options they were vesting might make them into millionaires. And just to make sure you were in the company for at least a year, with most stock option plans, unless you stayed an entire year, you wouldn’t vest any stock.
They take commonstock, not preferred, a fact that the entrepreneurs mentioned to me many times. Provide early seedcapital, and be the ones to make those introductions. They dont invest a lot of money; just enough to keep them going through the summer. Instead, focus on getting them ready for that stage.
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