Markets are dynamic. Reality can change faster than the way people play the game.
Traditionally, you needed (say) 100 people plus a few million in servers. Now, you need 10, and a few bucks for the VM (figures exaggerated for rhetorical reasons).
You needed to raise big dollars to get to a MVP. You had more dollars being put in by early investors, so they quite rightfully wanted a large slice of the pie. And a small option pool being shared by 100 "early" employees won't make a lot of millionaires.
Now, you have less money being put in (I hope), and few early employees (I assume). The investors deserve less of the pie, and the early employees can get a greater portion each.
But the standard employment contracts are still written (thus anchored) to 1% or less per employee.
Traditionally, you needed (say) 100 people plus a few million in servers. Now, you need 10, and a few bucks for the VM (figures exaggerated for rhetorical reasons).
You needed to raise big dollars to get to a MVP. You had more dollars being put in by early investors, so they quite rightfully wanted a large slice of the pie. And a small option pool being shared by 100 "early" employees won't make a lot of millionaires.
Now, you have less money being put in (I hope), and few early employees (I assume). The investors deserve less of the pie, and the early employees can get a greater portion each.
But the standard employment contracts are still written (thus anchored) to 1% or less per employee.