As others have pointed out, how is this a problem ? If the VCs are offering cash out to founders and early employees - it's just to sweeten the bitter side of a non-acquisition. It's not like the founders will take the cash out and retire to a private island as the author implies. Money is not a motivator for most of these founders and if it is - then the VCs are making a bad choice in not just offering the cash outs,but in the basic investing they are doing in that company. VCs are not that short sighted or stupid.