Of course, because the level of risk is different. $100,000 guaranteed is worth more than a <50% chance at $200,000, much less a <1% chance. A very high reward is inherently necessary to offset the very low probability of major success, otherwise people aren't going to do it.
> Could you let me know exactly what risks you think a failing startup founder faces that would entitle them to say, a thousand times more dollars than the average salaried employee?
The less than one in a thousand chance of making that much.
> Does this mean that any individual that takes out a loan larger than their assets to start a business is entitled to thousands of times more money than their average employee?
There are many ways to turn a thousand dollars into a 0.1% chance at a million dollars. Then 99.9% of the time you lose the thousand dollars -- and it's your time/money, not the bank's. Nobody is going to give you an unsecured loan to gamble with.
But if you bet on your own horse at 1000:1 odds and win, how are you not entitled to the proceeds?