Final answer:
Entrepreneurs should indeed avoid using mediocre people, as startups require committed individuals to succeed. The founders' investment often indicates their belief in the business, and investors support this by knowing the team and the business plan well.
Step-by-step explanation:
The statement that entrepreneurs should avoid using mediocre people touches on the importance of having a competent and motivated team. Startups are inherently risky and require a full commitment from everyone involved to increase the chances of success. Founders often have a clearer vision of the company's potential, illustrated by their willingness to invest their own money. They typically demonstrate more determination and belief in the firm than anyone else. Angel investors and venture capitalists recognize this and offer support by familiarizing themselves with the management team and the business plan to make informed decisions regarding their investments. Therefore, the idea is to surround oneself with individuals who share a similar dedication to the success of the business rather than settle for mediocrity which can put the venture at risk.