Its extremely common around the later stages (D and up) Logic is this : At that stage of a business, you want founders who are looking for a IPO or billion dol

Its extremely common around the later stages (D and up) Logic is this : At that stage of a business, you want founders who are looking for a IPO or billion dollar business. If that founder still has a mortgage on his house, he is going to indirectly steer the company in more 'safe' ways to ensure his nestegg retains value. If you just give that founder a few million, hes no longer motivated by that initial cash payment and only has the moon to shoot for now.