It&#x27;s perceived risk&#x2F;reward opportunity for getting away with something (ethics)... better to test a potential cofounder beforehand (know them well before) than find out later with random founders that could be crooks.  Plus, having overlapping social ties with cofounders, investors, customers, etc. tends to reduce trust and risk issues because their reputation means something.<p>Another thing I say: a contract or any agreement is only as good as relationship on which is written.