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Risk accumulates as the company operates. A risk faced by a layer 3 employee is also faced by layer 2 equity holders, even if they've left the firm.

Founder equity also compensates the founders for more than the risk that the company will fail and zero out their contributions; it also implicitly covers the upside risk of the founders, which upside was demonstrated by the fact that the founders created a company and presumably could have created others (or done something comparably lucrative) instead.



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