What keeps people away from startups?

(written by Lawrence Krubner, however indented passages are often quotes)

Factors that keep college students from joining startups:

Well, why do so many students go to Google and Wall Street rather than startups? It’s a complex issue and there are lots of reasons, but here are some of the top ones:

College students are irrationally risk averse. Instead of paying annual salaries and bonuses, startup upside is captured in option grants that are riskier. Many of the best college students at MIT are risk averse and think short term. These dispositions are highly cultural.

Prestige. Startups are missing brand value for parents, relatives, and friends. This is also highly cultural.

Too Many Startups / Choice Paradox. Students have no idea how to pick the right startups. Even if they did, there are an overwhelming number of choices. This is classic paradox of choice.

Mismatched Timelines. Startups are often too short-sighted to do college recruiting well, since it takes a long term investment strategy.

Why the focus on college students? Wouldn’t this apply to everyone?