There are degrees of porkiness (“porcinity?”) You’re a pig in that all of your own capital outside your home is invested in Blue Sky, but you’re a chicken (or at least not 100% pig) in that Blue Sky manages a portfolio of investments and as smart portfolio investment managers you’re not going to put yourself in the position where one bad investment might endanger the whole portfolio.

(Though if you did, you could certainly consider yourself 100% pig)

In most cases, the founder is 100% pig at the point of investment and you’d be a fool to consent to them diluting their pork ratio to 50% or 0% but you’d also be a fool to expect them to keep the financial pressure on for a further five years if you can see the financial pressure affecting the founder.

Far better to allow them to dilute to a more sustainable level of porcinity for the investment period. Which I think is what you are arguing for.

I’m Alan Jones, an EiR for startup accelerators, GP at M8 Ventures. Previously investor, founder, and early Yahoo PM. Opinions mine (but should also be yours).

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