(b) For the earliest employees, it's more like being a founder than having a normal job.
When you work for someone else, there are a large number of factors that you cannot control. You can't pick your technologies: you generally have to go along with what the rest of the team is already using. You can't pick your company culture: it's already been established. You can't pick your market (okay, you can't really either with your own startup). You're stuck with the existing codebase.
All this is fine if you also pick up your employer's values and expectations. But I don't know any startup founder that's like this. Usually, if you're interested in starting a company, it's because you have some internal standards for the quality that you'd like your code to live up to and the ease with which users can use it. So if you're working for someone else, you can easily get stuck with your own standards and your employer's tools, and the two may not match.
This is really, really stressful.
When I'm working on my startup, at least I know that any problems I'm having are my fault. And I can fix them. If I don't like the quality of the code I'm putting out, I can make the call to postpone feature X and fix bug Y instead. If I find that a framework is becoming more of a hassle than a help, I can rip it out and replace it with my own code without my boss vetoing it.
There's a whole other level of stress that comes from mixing both day job and startup. Right now, the most stressful thing in my life is wondering whether I should quit the day job to work full time on the startup. It's stressful because there is pitiably little information and yet it's an incredibly important decision. I won't know whether the reduced time available has caused me to miss my market opportunity until I've actually missed the market opportunity, at which point it's too late. Similarly, I won't know whether the added time pressure has made me mortgage the startup's codebase until it becomes impossible to work with, at which point it's generally too late to fix.
Some people would find it less stressful to pilot a small aircraft over open waters than be a passenger in a large jet flying over land.
Sometimes a founder has the HR gift and can intuitively put together a team that really runs like clockwork and everyone feels it and wants to be part of it.
You can find that different companies can be geared toward people at different stages of their lives. If someone has young children, a startup can provide flexibility and insurance. Same thing if someone has already retired or is changing careers. That can be especially juicy because you're getting someone with experience who can spot problems before they get bad and let you know about them.
What can you offer your employees? A healthy safe environment where their talents are recognized and rewarded? Options? Community? A place to learn new skills and grow?
Startups are good places for people with multiple skillsets. Someone who can wear sales, marketing and backup code hats would never get the opportunity to exercise all of his or her skillsets in a large company where with a small startup would find themselves particularly valued and valuable.
You can definitely engineer your hiring so that everyone winds up a winner. I'd be concerned about working for you if you were convinced that working for a company would have to suck. What kind of environment would you create? How fast would your turnover be? What kind of people do you want to hire and how do you intend to retain them?
http://james.hotornot.com/2007/02/on-having-balls-part-ii-staying-hungry.html