Agree with a lot of things you said. The burden of a tarnished record rarely falls on employees. Having been part of a failed startup doesn’t fall on employees, but a founder who is funded and eventually fails is radioactive to investors, perhaps for life. To a great extent, it dooms his future ventures. Investors have unforgiving memories. An employee however, can jump ship and move on to greener pastures in the wink of an eye. The ties that bind employees to the company are only as good as the startup’s cash flow statement.