Earlier quoted context omitted.
Maybe that explains why there aren't a lot of co-op grocery stores or hardware companies compared to the number that used outside investment or the capital of one individual rich person to get started, but software engineers are in a better position to do this than most professions that I can think of.
Can you explain with some detail how would this work? Because I can’t make it work in my head. Say you find 100 tech people that can afford to put $100k each to start the company. Then what? Do they put up money and work for free? If you have to give the money back in 1 year as a salary what about the second year? How about marketing budget, office space, equipment etc?
As for why the employees would work for equity, well, they'd value it for the same reasons the investors would. If 1M shares is worth $20M to a group of investors it should be worth the same to 100 employees. You're obviously going to be using personal runway, which millionaires have more of than average workers, but SWEs have been making enough money over the last 30 years that it will be easier for them than almost any other profession.