The author states that the incriminated blog post is perfectly logically constructed. That is not the case. The argument:
Once you have less skin in the game, it is easier to make bad decisions
Doesn't quantify how much it's easier, and nothing follows from this. It may be ok that some startups (maybe even 99%) fail because not having skin in the game is not right for them. This may filter out, globally, bad startups.
But let's allow the argument to be true and that the rest follows. Still it's all conditional to a specific startup making those mistakes, being easier to make doesn't mean they are made consistently.
The other way to think about it is that investors pitching in doesn’t reduce your own investment. If you take out a second mortgage and pour all your money into your business, you’ve got the same skin in the game regardless of what investor money your business takes from then on out.
Once you have less skin in the game, it is easier to make bad decisions
Doesn't quantify how much it's easier, and nothing follows from this. It may be ok that some startups (maybe even 99%) fail because not having skin in the game is not right for them. This may filter out, globally, bad startups.
But let's allow the argument to be true and that the rest follows. Still it's all conditional to a specific startup making those mistakes, being easier to make doesn't mean they are made consistently.