The reason that founders cashing out on big rounds was never absurd, and will never be absurd (though market conditions may make it less common for a time) is t

The reason that founders cashing out on big rounds was never absurd, and will never be absurd (though market conditions may make it less common for a time) is that in many respects it aligns the interests of the founders with the investors. Money has diminishing marginal utility, and most people would be just as happy (or unhappy) with $10m as they would with $50m. That's not true at all for VC firms or their limited partners. Twice the profit is roughly twice as good for them, in fact in the competitive industry, it might be more than twice as good. If everyone is getting 15% returns, the difference between 10% and 20% for a VC fund can be tremendous the next time they're out raising funds. By allowing the founders to cash out, it gives them the cushion they need to swing for the fences, rather than trying to sell their company as soon as it will make them independently wealthy.