> another reason for VCs encouraging founders to sell shares: giving them a taste of wealth
VCs are wealthy. Some of them weren't born wealthy. The best among them recognise that removing the worry about e.g. paying rent will make a better CEO.
VCs are wealthy. Some of them weren't born wealthy. The best among them recognise that removing the worry about e.g. paying rent will make a better CEO.
As for employees? They are typically not calling the shots about company direction. I don't see a reason why investors would care about employees.
They can be motivated or not, knowing that the founder made big bucks and they made nothing is bound to lower motivation. Thus the title of the article, founder's liquidity is a well guarded secret.
Only once the startup has matured at least a little, too much money too early and your hungry founders become lazy.