Early employees always get diluted. That's what happens when you raise additional capital, regardless of structure.

They make up for this with a combination of a lower exercise price, the vesting clock starting earlier, and typically a larger grant for earlier employees.

Companies retain employees by giving additional refresh grants and/or raises.

I'm not sure why it's OK for Uber to raise a few billion $ and there isn't a fuss about how that's hurting employees when it's not okay here. They both are getting diluted.