But that potential upside of a couple million is now facing a downside of the company not being able to raise their next round and facing layoffs on a 6-18 month runway. I always thought that economic downturns meant people race to the big companies for more security?

Of course, if you were already pulling 200/200 from a big company, you might have already banked enough of a nest egg to feel comfortable with the risk of startups.