Skin in the Game
Having a real personal stake, money, time, reputation, in an outcome, so you share in the downside as well as the upside. Popularized by Nassim Taleb.
Why it matters
Skin in the game aligns incentives and signals commitment, which is why investors want founders personally invested and founders want it from key hires and partners. Its presence or absence tells you whose interests truly match yours.
For example
Investors want to see a founder who has invested their own savings and years, because that skin in the game aligns their interests with the outcome.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Founder life, part of the Starting Up hub.
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