Feeling obliged to return the capital in case of failure is sort of messed up. It basically turns their bet into risk-free investment, with potentially massive

Feeling obliged to return the capital in case of failure is sort of messed up. It basically turns their bet into risk-free investment, with potentially massive upside. When I worked in a startup that eventually failed, and heard that the young (and broke) founder felt obliged to fully return seed money to the billionaire angel investor that funded us (even though he explicitly refered to us as "a bet"), it felt really weird.