If only 1 out of 10 startups “succeed” where success is defined by “the investors got their money back”. What are he chances for you as an employee getting any meaningful returns? The investors are well diversified, you aren’t as an employee.

Besides that, it takes the average startup 7-10 years to exit. As opposed to a public company where you can diversify your risk every three to six months depending on your vesting schedule.