Neither. I think that is a an utterly stupid way to look at and gauge Entrepreneurs: http://onstartups.com/tabid/3339/bid/66022/Why-Venture-Capitalists-Invest-In-Pigs-Not-Chickens.aspx
We’re not animals.
And more importantly, if having someone locked in to a mortgage is a viable strategy for keeping employees motivated, you’re in for a rude awakening especially when employing THIS generation of honeybadgers.
You can file this under investors to avoid. There are plenty of situations that I have seen where non-investor types get involved in startup funding. These range from wealthy family members and benefactors to corporations and government organizations. The reason I call them non-investors is that…
The biggest thing I learned from fundraising? Never assume anything about anyone. Well dressed seemingly well to do people with Brooks Brothers shirts wasted a ton of my time. Whereas people that hardly spoke English, or wore Walmart pants wrote big checks and gave amazing insight and advice about how to run my business, which they themselves learned while building their fortune.
The lesson? Never assume anything about a new connection. Treat each person with respect and time. It’ll all get sorted out in the end.