Employees take more risk. Each one is putting in an amount of money equal to an angel, often with options that give them far less compensation compared to that angel. You can't work for 10 companies so all your eggs are in one basket.

You would be right if the employees were getting market salary and working a market/normal work week of say 50 hours.

I read it as; if you take shares instead of your marketvalue in cash then you need to understand what you are doing. A lot of people do not.

Term sheets and contracts by investors usually contain things that benefits only them, especially when the company does not work as expected.

This was my take, and I'm pretty sure I belong to the group that does not.