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If you want to invest in a startup get a high paying job at an established company and just become an angel investor. On the other hand if you want to work at

If you want to invest in a startup get a high paying job at an established company and just become an angel investor. On the other hand if you want to work at a startup because of the lifestyle or mission then don’t expect to make any (well not much) money if the company succeeds. The sooner everyone wakes up to this reality the better.

dangrossman 11y ago
> just become an angel investor Most people are not rich, even software developers. Only the rich can be angel investors, because it's illegal to issue securities to non-accredited investors. Being an accredited investor requires a net worth of $1M excluding your house, or a steady job with $200K/year pay ($300K if married), and 2 years at that pay level before you can start investing. There's no net worth or income requirement to work at a startup and get equity that way.
- morgante 11y ago
  Take a developer job at a top tech company and you'll be an accredited investor quickly enough.
- danieltillett 11y ago
  If you are not able to earn $200,000 a year as a senior developer in the valley working at one of the established companies then you are not really the sort of person that would be an early hire by a first class startup. Joining a second rate start up is even a worse idea than working for an established company - you will end up with less pay and worthless options. Edit. Wow this comment hit a nerve with some people here.
  - narrowrail 11y ago
    I think the problem is most people (even VCs) can't tell the difference between a "first class startup" and a "second rate start up." Your comment has a ring of elitism to it, not to mention a lack of consistency in phrasings that bothers us pedants.
    - danieltillett 11y ago
      They certainly can tell the difference. The ones they back are first class and the ones they don’t are second rate :P I was more making the point that it is not wise to turn down a good salary with an established company for the tiny level of equity that you will end up with at a startup and if the startup is not perceived by the investor community as being the next unicorn then this equity will be worthless.
limeyx 11y ago
It may not be too likely but it's possible. I was employee ~60 in a startup way back when which went out for over $1BN and made out pretty well. Devs in the 20-40 employee number were probably making out with $4-5Million Of course things were less institutionalized and procedural than they are now. Now I think the balance has swayed in favor of the founders/investors much more than it used to be but thats just anecdotal

dangrossman 11y ago

> just become an angel investor Most people are not rich, even software developers. Only the rich can be angel investors, because it's illegal to issue securities to non-accredited investors. Being an accredited investor requires a net worth of $1M excluding your house, or a steady job with $200K/year pay ($300K if married), and 2 years at that pay level before you can start investing. There's no net worth or income requirement to work at a startup and get equity that way.

morgante 11y ago
Take a developer job at a top tech company and you'll be an accredited investor quickly enough.
danieltillett 11y ago
If you are not able to earn $200,000 a year as a senior developer in the valley working at one of the established companies then you are not really the sort of person that would be an early hire by a first class startup. Joining a second rate start up is even a worse idea than working for an established company - you will end up with less pay and worthless options. Edit. Wow this comment hit a nerve with some people here.
- narrowrail 11y ago
  I think the problem is most people (even VCs) can't tell the difference between a "first class startup" and a "second rate start up." Your comment has a ring of elitism to it, not to mention a lack of consistency in phrasings that bothers us pedants.
  - danieltillett 11y ago
    They certainly can tell the difference. The ones they back are first class and the ones they don’t are second rate :P I was more making the point that it is not wise to turn down a good salary with an established company for the tiny level of equity that you will end up with at a startup and if the startup is not perceived by the investor community as being the next unicorn then this equity will be worthless.

limeyx 11y ago

It may not be too likely but it's possible. I was employee ~60 in a startup way back when which went out for over $1BN and made out pretty well. Devs in the 20-40 employee number were probably making out with $4-5Million Of course things were less institutionalized and procedural than they are now. Now I think the balance has swayed in favor of the founders/investors much more than it used to be but thats just anecdotal