I disagree, though, that startups have binary outcomes. In fact, one of the big problems in "investing" in startups (cash or labor) is the misalignment of incentives. It's common for the founding team to pursue outcomes that will enrich them but zero out common stock holders, and it's common for investors to push back on exits that would enrich everybody but not satisfy fund goals.
I disagree, though, that startups have binary outcomes. In fact, one of the big problems in "investing" in startups (cash or labor) is the misalignment of incentives. It's common for the founding team to pursue outcomes that will enrich them but zero out common stock holders, and it's common for investors to push back on exits that would enrich everybody but not satisfy fund goals.