You articulated the situation (and my thinking) very well. Any thoughts on what future early employees could do to protect themselves?
And then I'd see where it took me from there.
Sidenote: In my last discussion, some of the phrasing was eerily similar - "That is unfortunate and unexpected, as I was looking forward to working with you guys" - "we're businessmen here" - "part ways as friends".. etc. Just that I didn't push for what you are suggesting. Thanks again!
Outside: "You can't afford $60k? Oh, you're smart guys, I'm sure you can figure it out if it is a priority for you."
Inside: "Horsepuckey, YC company, cry me more tears about your inability to find tens of thousands of dollars when you're a mortal lock on a seed round and presumably on the glide path to an A."