Earlier quoted context omitted.
Worse than becoming lifestyle company is becoming a zombie startup. Zombie is when founders get rid of almost everyone except what they need to give the impression of effort, do little work, but draw an income and slowly spend down the money they raised until it’s gone. I was one of the very few survivors at a startup that turned into a zombie in 2020 (went from 100+ employees to 10 in a matter of weeks). In some way…
I question your read on what happens here. At most startups the investors control the board (there are a few where a charismatic founder manages to retain control, but that's rare). If the board thought the founder was just transferring the remaining investment to himself slowly they'd fire him and replace him with someone to wind operations down.
Plus the possibility they do hit it big is always there. It’s not like they aren’t putting in any effort and collecting a salary. They just aren’t grinding.
Then there are the personal relationships.