Earlier quoted context omitted.
Isn't "fund people" just hiring without the extra steps?
Isn't that what VCs in general are doing? Hiring for more money, with more expected gains from you, with a different kind of legal arrangement, but still hiring nevertheless.
Funding people means having a lot of trust in them. What's unsaid is if the investor believes coloring outside of the lines to make everyone more money is a breach of that trust, or just the normal cost/risk of business.