[gijjk]

> they incorrectly overestimate their ability spend the funds in profit seeking ways eg gamble the funds or use the funds towards seeking new funds.

That's harsh on a startup news forum. I wonder how PG and VC would react if founder spent their investments on family welfare.

[jmathai]

I think it's short term vs. long term. Investing in welfare (keeping children clothed, fed and in school) has long term benefits. Unfortunately, that's next to impossible for much of the world.

It's no different from the lottery system here in the US which is used by and marketed to lower income individuals. I don't think anyone says that buying lottery tickets is a "good" investment for a family.