I think it is an important insight that founders who do not need the money will make different decisions than ones that have never had money. It doesn't follow that they make "better" decisions however.
I think what Chris Sacca did was excellent, keep the "everyday" fears away by taking care of imminent personal financial threats, helps founders a lot. But taking FU money off the table prior to a success/fail determination is a dangerous thing to do as it screws up motivations around success.
Agree, I've spoken with VC's who said getting liquidity for founders ended up ruining the companies because all the founders cared about was finding ways to create more liquidity.
Comments
I think it is an important insight that founders who do not need the money will make different decisions than ones that have never had money. It doesn't follow that they make "better" decisions however.
I think what Chris Sacca did was excellent, keep the "everyday" fears away by taking care of imminent personal financial threats, helps founders a lot. But taking FU money off the table prior to a success/fail determination is a dangerous thing to do as it screws up motivations around success.
Agree, I've spoken with VC's who said getting liquidity for founders ended up ruining the companies because all the founders cared about was finding ways to create more liquidity.