Comment by dreamdu5t

Founders aren't necessarily the ones putting up the cash. I haven't seen any statistics on the percentage of "startups" that are founder-funded, but in my personal experience the majority are not - even if the money is borrowed from family. Not considering opportunity cost, the founder isn't out $200k, the investors are. IMHO founders usually have the best position in a startup. They get paid to possibly reap the benefits of ownership, but if it fails they are out of a job like any other employee. They assume similar costs as their employees, but stand to gain much more.