I dunno how possible this is legally, but one thing YC could do is create a pool of equity of all the startups in a batch which employees could be granted options in.
Investors diversify, and founders own a disproportionate share of their companies (because they take the largest risks, but even so), but early employees are locked in for years with no chance to diversify.
So a shared pool would let early employees diversify their (time) investment.
Investors diversify, and founders own a disproportionate share of their companies (because they take the largest risks, but even so), but early employees are locked in for years with no chance to diversify.
So a shared pool would let early employees diversify their (time) investment.