Perhaps more interesting is that Elastic, the company behind Elasticsearch, just IPO'ed on NYSE, and they, too, have a fully distributed team of over 700 -- might even be trending toward 1000 by now. Zapier is another one at multi-hundred-person scale, and is a YC company. A couple other scaled-up ones on this model include Automattic (company behind Wordpress), DataStax (company behind Cassandra). There is also Wiki…
Sounds like the perfect working model but how do you handle the multitude of labour laws, payroll, taxation etc?
If you have international employers, there's more complexity besides wiring them funds; you have to ensure you're not violating local labor law as it relates to employee vs contractor classification. Talk to an attorney!