> but what else explains the fact that even when there's more risk and likely poorer financial outcomes these otherwise very intelligent people still choose to work at these companies?
That's the wrong question to ask.
The right question to ask is: "How does an early stage startup attract the people it needs to be successful."
Money isn't the only metric, and there are good reasons to say "if you want top dollar, go work for a FAANG."
On the other hand, I was once approached to be employee #1 of a rather interesting startup, and the risk/reward ratio just wasn't there. The company was more likely to fail, and I was more likely to find myself unemployed after 24 months. Now that I have children and a mortgage, I can not do this.
In contrast, the company severely needed someone like me: Significant experience and knowledge; AND active interest in their product, with a mildly personal stake. Relying on someone young and cheap would be risky for them.
That's the wrong question to ask.
The right question to ask is: "How does an early stage startup attract the people it needs to be successful."
Money isn't the only metric, and there are good reasons to say "if you want top dollar, go work for a FAANG."
On the other hand, I was once approached to be employee #1 of a rather interesting startup, and the risk/reward ratio just wasn't there. The company was more likely to fail, and I was more likely to find myself unemployed after 24 months. Now that I have children and a mortgage, I can not do this.
In contrast, the company severely needed someone like me: Significant experience and knowledge; AND active interest in their product, with a mildly personal stake. Relying on someone young and cheap would be risky for them.