Outside the contract, nonessential info can stay undisclosed-that’s the venture capitalist’s burden.

Robin Li once drew an analogy, saying that young people should have the courage to start a business. The process of starting a company is like flying a plane while repairing it, or even building it from scratch. You have to be bold and not wait around—if you wait until everything is clear, someone else will have already taken the opportunity.
If you’re using Robin’s money to start a company, you don’t need to figure things out first. You can fly the plane and build it simultaneously—it’s totally fine. After all, Robin himself is an angel investor.
But if you’re using your parents’ life savings, maybe you should think twice.

Got the key point? It’s about who actually owns this plane.
If the plane belongs to an angel investor or VC/PE firm, whatever—the plane can keep flying even if we don’t repair it. It’s their money burning, after all, and we’re just paying ourselves salaries.

If you’re using Robin’s money to start a company, you can’t fail. Even if the startup doesn’t work out, you’ve already collected high salaries during those years—you’re essentially paying yourself with his money. Plus, you gain experience and connections.
But if you sold your parents’ house to fund your startup and pay someone else’s salary, when the plane crashes, you’ll be the one crying.

This process resembles borrowing money and failing to repay, especially when there’s information asymmetry.
When you know you’re heading for failure, you can choose not to tell the investor—and even continue raising funds.
You see, the boundaries are interesting. Being “honest” only means disclosing what you’re required to disclose. #ReadingNotes