But, exactly what is the risk that employees take (no sarcasm intended)? I mean, let's say an early employee takes 20% less salary than a later one for the first year or two. Additionally, take into account the fact that the company is more likely to fail at an earlier stage, and the earlier employee might need a couple of months to get a new job, I still can't see the risk of an earlier employee being a degree of magnitude higher than a later one.

Again, thanks for your time in answering such silly questions. For a kid trying to figure out those things, I'm much appreciated that.