It seems commonly accepted that all VC investment comes with (at least) a 1x liquidation preference. Is there logic as to why this is commonly accepted and prevalent? Clearly investors always want the best possible deal for themselves, but why/how did this become the standard deal term? On the surface, it seems wrong that employees get "worse" equity, i.e. common equity, than the investors and founders.
Why shouldn't investors and founders share the same equity as other employees? Investors can presumably adjust their valuation model accordingly.
