I caught that too. It is false in several ways that destroy the rest of the argument.
First because less skin in the game doesn't make you make bad decisions, it just makes it easier. As such every argument following this point is destroyed by "assume we make good decisions anyway", which is just as valid as "assume we make bad decisions from now on".
Second, because your skin in the game probably doesn't change, instead the total amount of skin in the game gets larger. Most founders (at least in the early days) have invested enough of their own money AND time (more valuable than money to founders!) that they have enough skin in the game as to not find it easier to make bad decisions.
Third, because the investor now has skin in the game and has incentive and leverage to prevent you from making bad decisions. You can be forced to make better decisions because of this.
There are many reasons to not take investors, that is a complex trade off decision. However your less skin in the game is not one of them.
"Second, because your skin in the game probably doesn't change, instead the total amount of skin in the game gets larger."
But the dimensions of the game grow as well, and that is where mistakes can be made.
Some founders are probably better bosses/managers in a collective of five than in a collective of fifty. If the company grows slowly, they may improve their skills/catch up. If it grows in a sudden leap, which is well possible with a large injection of cash, the space for making bad decisions from ignorance or lack of experience grows as well.
First because less skin in the game doesn't make you make bad decisions, it just makes it easier. As such every argument following this point is destroyed by "assume we make good decisions anyway", which is just as valid as "assume we make bad decisions from now on".
Second, because your skin in the game probably doesn't change, instead the total amount of skin in the game gets larger. Most founders (at least in the early days) have invested enough of their own money AND time (more valuable than money to founders!) that they have enough skin in the game as to not find it easier to make bad decisions.
Third, because the investor now has skin in the game and has incentive and leverage to prevent you from making bad decisions. You can be forced to make better decisions because of this.
There are many reasons to not take investors, that is a complex trade off decision. However your less skin in the game is not one of them.