> you don't want your investment to get hit by a bus
So take out life insurance on the founder.
And if two founders are essential for a successful startup, then there is actually twice as much chance of it failing by one of them being hit by a bus.
So take out life insurance on the founder.
And if two founders are essential for a successful startup, then there is actually twice as much chance of it failing by one of them being hit by a bus.
You can only insure for the amount of your investment, that offsets the risk but doesn't cover your gains. Also since the cost to do so is 1/10th of your investment over 3 years, you would typically not opt for the coverage. I don't know of an investor who does.
There is also a belief that no one guy is "that smart" that anything 1 person can build has any competitive advantage.