I realize that the employees won't normally be as talented as the founders, but I question whether any non-braindead people will work for $24k/yr. That's getting dangerously close to minimum wage.
That said, if you choose well and you train well, the tradeoffs sometimes can work out quite well for you. People working their first 'real job' are often as dedicated as the founders; they know that if you make it big, even if they don't have equity, their career is made, either with you or with others who have heard of your success.
He's saying there are no employees at this stage. Just the founders.