Academic and market interest in environmental social and governance (ESG) investing has grown markedly in recent years. Although less prominent a substantial literature also explores whether “sin pays” in the public capital markets. This literature’s underlying theory is that social norms discourage the funding of businesses that promote vice and that some investors particularly institutions sensitive to social norms such as pension funds and foundations will shun such investments. A consequence of this vice aversion is a “vice premium” for those investors who will invest in such companies. Largely unexplored however is what industries or business models qualify as “vice” how this definition is constructed and changes how vice aversion affects startup corporate governance and finance and what consequences vice aversion holds for the real economy. We address these gaps through a series of interviews with startup founders venture-capital (VC) and angel investors and legal and financial