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I think it would be shame if the model failed just because of fluctuations among tech startups. It should really apply to any business where people want to attract and retain talent.
Having benefited from this deal at Google, I feel like it has a lot of benefits for both the company and its employees.
But at the same time, if they don't, it's really hard to motivate themselves and their employees to put in all the effort needed to make a startup work.