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I've worked at both startups and big companies since I first came to SV in 1999. And some startups that became big companies. For me, there's much more than t
by lafay 11y ago
I've worked at both startups and big companies since I first came to SV in 1999. And some startups that became big companies. For me, there's much more than the practical & financial considerations laid out here. Deep down I know that I enjoy taking risks -- I like the roller coaster ride, and having a very real and visible impact on whether the company as a whole sinks or swims. Know yourself and don't ignore your intuition.
Also, while "rand(100)" might be an accurate characterization of the returns of all employees over all startups, it is not entirely a game of chance. There is skill involved in picking the right startup to join: being proactive in your search, building a personal network, finding founders with track records, considering enterprise startups. You can learn to improve your odds -- a bit like learning to count cards.
- bri3d 11y agoIf you think you're that good at picking financially successful startups, why not invest just money rather than time AND money?
- astral303 11y agoTime is money.
- thomaslangston 11y agoBecause you're not legally able to do so unless you're an accredited investor?
- pil4rin 11y agoIs this true? if so, how can sites like angel.co exist? I believe I can invest in most of the startups right now on there..
- dangrossman 11y agoFrom the AngelList FAQ: "Investors are required to fill out a questionnaire to establish that they are accredited. You can only accept money from accredited investors whether you raise money publicly or not."
- colbyaley 11y agoYou must be an accredited investor to invest on angel.co. see: https://angel.co/help/general-solicitation/accredited https://angel.co/help/general-solicitation/accredited
- oblio 11y agoHmmmm... I'm guessing this law exists to prohibit speculation by people who would use their children's tuition for it? I remember reading something about the Great Depression and it involved ordinary people investing in stocks and losing everything.
- infinite8s 11y agoNot their children's tuition, their next month's rent or grocery bill.
- Retric 11y agoYou can do friends and family financing without being an accredited investor. You just need an existing relationship before the investment. However, 200k for the last 2 years + an expectation for 200k next year qualifies you as an accredited investor. (300k if married) https://en.wikipedia.org/wiki/Accredited_investor https://en.wikipedia.org/wiki/Accredited_investor
- zeroonetwothree 11y agoIf you have the $250k/yr at BigCo then you are accredited, so there you go :).
- exw 11y agoBecause it is very difficult as an unknown individual to invest in any "real" startup vs the latest Uber/AirBnB clone on AngelList.
- vonnik 11y agoBecause more people have time to invest than have money. And because investing time in a fast-growing startup is a hell of a lot more fun.
- lafay 11y agoBecause I enjoy the work and I like being part of the action. I invest my money too, but it doesn't meet the same need.