A big question in this is what constitutes a vendor. People who are experienced enough to price the risk into contracts, manage cashflow and not put all eggs i

A big question in this is what constitutes a vendor. People who are experienced enough to price the risk into contracts, manage cashflow and not put all eggs into one basket won't get burned from a customers' insolvency. But that comes from experience. Young people or the typical specialist such as a carpenter or electrician, are not necessarily this experienced in business. In my view there's no line between such a vendor, and an individual who happens to be on the payroll. There might be legally, but they are equally entitled to payment for their work. I'm sure neither you nor Thomas are ones to screw people over. But I think there's too much self-absolution of responsibility in startup circles, and your posts initially seemed to talk that point of view. It boils down to being a decent person and stopping a venture before puting other people in financial jeopardy. Don't cry over the venture capitalists losses. But do make whole the people who have worked hard for you, whether employed or not.