Easy to say that at 45, you can afford to do so, college education costs have increased in multiples since your generation graduated. Younger founders today have to factor in rents in bay area, cost of health-care and insurance and crippling student debt and after taxes that 200k is not make it rich quick numbers, even my generation (36) find it hard to be founders.
The LP has 20 startups they can afford it, we on the other hand have lot more skin in the game than they, and not being able to afford say proper health-care or having to commute 2+ hours everyday affects the success of the startup lot more than extra 50-100k extra is going to cost the fund in a meaningful way.
At a more fundamental level, it an agency problem found in any management compensation theory. Investors/Shareholders need to keep the management motivated and vested in the success of the organization, if that means 200k salaries today it doesn't really matter.
The LP has 20 startups they can afford it, we on the other hand have lot more skin in the game than they, and not being able to afford say proper health-care or having to commute 2+ hours everyday affects the success of the startup lot more than extra 50-100k extra is going to cost the fund in a meaningful way.
At a more fundamental level, it an agency problem found in any management compensation theory. Investors/Shareholders need to keep the management motivated and vested in the success of the organization, if that means 200k salaries today it doesn't really matter.