You raise an interesting point. As difficult as it is continuing to be to hire top technical talent in the Valley, I wonder if some talented people might have sufficient leverage, particularly in a situation like this one where the employer is a small, underfunded startup, to get themselves options on preferred stock rather than common stock.
I'm sure that raises a host of complications vis-a-vis the cap table etc., but it nonetheless seems an intriguing possibility.
yes, that is definitely an issue. In many cases,I think some people need to worry about their rent, monthly expense, or mortgage (personal burn-rate) to worry about. If you are in your early twenty, your personal burn-rate would be much lower than in your late thirty.
Shares/options are great for motivating the team. They are bonus. But, we all need to at least cover our personal bur-rate to live.
I feel, as a founder, at least I should not let my devoting team members worry about that.
I'm sure that raises a host of complications vis-a-vis the cap table etc., but it nonetheless seems an intriguing possibility.