> A VC already has the finances, they aren't constrained by the original argument of "demanding" a higher price for their salary. They have already attained wealth and now choose to pour some of that wealth into funding other ventures.
I know you're done debating, so I'll leave this here for your education.
VCs are fund managers who work on behalf of their LPs (Limited partners, or fund investors), with very few VC funds being self-funded by their managers. Most VCs are not independently wealthy by first-world standards and most LP money comes from large institutions rather than individuals. Angel investors are a different story, but they are working with much smaller amounts of capital.
> A VC doesn't need a founder. They can setup a company themselves and pay market rate for the staff to fill positions.
While there's nothing legally preventing them from doing so, most LPs would be very upset (and likely sue) if their fund managers took their cash and directly founded companies with it. The closest thing that exists to something like this are "Entrepreneurs in Residence" which are often not directly involved with managing the fund.
I know you're done debating, so I'll leave this here for your education.
VCs are fund managers who work on behalf of their LPs (Limited partners, or fund investors), with very few VC funds being self-funded by their managers. Most VCs are not independently wealthy by first-world standards and most LP money comes from large institutions rather than individuals. Angel investors are a different story, but they are working with much smaller amounts of capital.
> A VC doesn't need a founder. They can setup a company themselves and pay market rate for the staff to fill positions.
While there's nothing legally preventing them from doing so, most LPs would be very upset (and likely sue) if their fund managers took their cash and directly founded companies with it. The closest thing that exists to something like this are "Entrepreneurs in Residence" which are often not directly involved with managing the fund.