It is about aligning risk preferences. Being "all-in" is not likely a good thing for a founder. The founder prefers to take less risk which results to mediocre exit for the investor. The investor would rather have bigger exit or nothing, and giving the founder some money is helping to aling the risk preferences a bit towards the same direction.
As for employees? They are typically not calling the shots about company direction. I don't see a reason why investors would care about employees.
> As for employees? They are typically not calling the shots about company direction.
They can be motivated or not, knowing that the founder made big bucks and they made nothing is bound to lower motivation. Thus the title of the article, founder's liquidity is a well guarded secret.
As for employees? They are typically not calling the shots about company direction. I don't see a reason why investors would care about employees.