Second, companies hire consultants to do work their internal employees don't want to do. Over the years, due to the high demand for technical expertise and their specialized knowledge, consultants have enjoyed a steady growth of their hourly rate. This trend will probably last for sometime to come. Full time employee positions often constitutes a bigger commitment. Generally it provides a greater sense of security, and a sense of belonging.
Some startups offer generous stock options in order to attract outstanding talent.
There is of course the risk of downside, but also the potential to make millions. The latest stat shows that an average of 64 millionaires are created everyday here in Silicon Valley. It's a question only you can answer, after taking into careful consideration your personal life style, risk tolerance, and professional career path.