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Even top VCs need a portfolio of companies to produce a return. If you asked a VC to bet a whole fund on a single company :) and these are people who's full tim
by qaq 8y ago
Even top VCs need a portfolio of companies to produce a return. If you asked a VC to bet a whole fund on a single company :) and these are people who's full time job is to pick companies
- microtherion 8y agoYeah, a key strategy for investors is to diversify, and that's exactly what startup employees cannot meaningfully do.
- jcoffland 8y agoStartup employees could pool their risk by creating their own shared investment fund which held all their shares/options in trust and spread out the winnings. The reward would be far less but more predictable. I doubt many would have the foresight to commit to something like this.
- albertgoeswoof 8y agoNeat idea, but how would you choose who qualifies to join?
- jcoffland 8y agoProbably the same way a VC chooses startups.
- ryandrake 8y agoStart up employees take on far more risk than startup investors. Investors can diversify over 10s or 100s of companies but an employee has to pick just one and bet their career on it.