I totally agree that finance draws top talent (and that I really wish it wouldn't), but I wouldn't say that a lot of those folks work less hard. I spent 4 years on Wall Street (loosely construed) and spent time with some of the hardest workers I've ever encountered. The earnings they generate, however, are definitely far above startup folks, on average.
It is interesting, though, to look at the tails of that distribution. That's where you find the massive wealth generation. And, instructively, at those outer limits, you'll find that the top of the top is populated by entrepreneurs as much as it is by finance guys. Bill Gates, Ellison, Zuck, etc. compare to the Warren Buffets, John Paulsons, and their compatriots.
Good point - important to look at the tail. Also, a lot of these burnt out finance kids are finding tech interesting - but so many just want to become a vc. I think its a personality issue too - have had so many mind numbing conversations with super smart NYC finance whizes who want to start a company but the template line is: I have the concept, i'll hire a tech guy, give him 5% equity, and we will conquer the world. Very very few are doing it to solve a problem / create a company - the primary focus is still what it was while running the hedge fund.
Having said that - there is so much good stuff coming up in NYC too. Good signs.
It is interesting, though, to look at the tails of that distribution. That's where you find the massive wealth generation. And, instructively, at those outer limits, you'll find that the top of the top is populated by entrepreneurs as much as it is by finance guys. Bill Gates, Ellison, Zuck, etc. compare to the Warren Buffets, John Paulsons, and their compatriots.