I disagree. Employees are still collecting a salary, and they probably haven't put lots of money into the company up front (although over time they are effectively doing so in the form of lower salary).
Generally founders of startups have taken a leap of faith well before there are any employees collecting a salary. They work full time on the idea for a year or two before they can approach investors, living off of savings or small investments money from friends and family. By the time the first employees are brought in, there is enough money in the bank to pay salary and benefits for a year or longer.
Do I think that most startups under value the opportunity/uncertainty risk that employees take? Absolutely.
I'm not sure, that past activities of founders (or employees) are relevant to risk estimation.
It should be just financial/lost opportunity/uncertainty risks that go into the equation. A particular founder or employee is _going_ to take some risk by joining/or staying with the company.
Generally founders of startups have taken a leap of faith well before there are any employees collecting a salary. They work full time on the idea for a year or two before they can approach investors, living off of savings or small investments money from friends and family. By the time the first employees are brought in, there is enough money in the bank to pay salary and benefits for a year or longer.
Do I think that most startups under value the opportunity/uncertainty risk that employees take? Absolutely.