Here's the scenario: there's a startup with two founders (and a couple of other participants) in it working part-time while keeping their full-time, primary jobs. They are building a healthcare-related SaaS application. They have been developing the vision and have actually recently got to the point where:
a) they have a handful of signed beta participants, contracted to turning into paying clients in 3-6 months after v1.0 is launched in a couple of months,
b) have successfully graduated from an entrepreneurial program very similar to Y Combinator with lots of investors now sniffing about, and
c) have a great, positive pipeline ready to close.
They are going to have to raise funding soon to staff and ramp up. One founder is ready to go full-time as soon as money is raised, another is not so ready for various reasons. Primarily, the latter strongly believes the dollars should go towards getting more staff first, then hiring execs shortly thereafter. The latter's dedication is not the issues; he's been putting in mean hours for months.
The latter is the guy basically building the whole platform: the guy who'll be CIO. The former is the sales/marketing side, the guy who'll be CEO.
Do investors need to see these two founders as full-time in the business to feel better about investing in it? Does the guy who knows the most right now about the systems and service need to be locked in an employment contract, or is the equity arrangement enough? What do investors expect when it is said "they want to see a good idea and a solid team in a startup"?