3 ms·

> locks people out of some of the best ways to create wealth unless they’re already rich im sorry what? investing in startups is one of the best way to create

> locks people out of some of the best ways to create wealth unless they’re already rich im sorry what? investing in startups is one of the best way to create wealth? you have a source that talks about average and median returns on investments across all startups?

gonehome 5y ago
I don't care about the average or median case and 'some of the best' is suitably subjective, I just want the freedom to make my own choices. The entire bet with startups if you're not rich enough to fund via an incubator is picking a team or company you think is good and kicking in some smallish amount of cash (~10k), angel list basically. If you're in the industry you may be better positioned to do this than a random person. We can do this by going and working for a startup and dumping money in to exercise options (arguably even riskier since now your job is also tied to its success), but not by just kicking in some cash unless you hit the accredited investor threshold. I should be able to choose to do this if I want to. Instead I can only put money in after the company is public and a lot of the early return has already been taken by people rich enough to be allowed to buy in earlier. Meanwhile I could go and gamble at a casino on slots without any proof that I'm rich enough to waste money that way.
- jonas21 5y ago
  If you've been in the industry for a while, you may already qualify as an accredited investor. The income threshold is $200K/year, which according to levels.fyi would easily be met by someone with a few years experience at a FAANG, for example. If not, you can also qualify by passing the Series 65 exam, which is a 3-hour multiple-choice test that anyone can take. You'll probably find that the biggest barrier is finding good startups who will take your money. The ones interested in taking a small amount of cash from some random person are also the least likely to succeed.
  - gonehome 5y ago
    > The ones interested in taking a small amount of cash from some random person are also the least likely to succeed. Part of this is the result of the existing regulations making it a pain to do so.
    - Daishiman 5y ago
      I live in a place with no requirements to be an investor and it's still all the same. It's just in general a very, very bad idea.

gonehome 5y ago

I don't care about the average or median case and 'some of the best' is suitably subjective, I just want the freedom to make my own choices. The entire bet with startups if you're not rich enough to fund via an incubator is picking a team or company you think is good and kicking in some smallish amount of cash (~10k), angel list basically. If you're in the industry you may be better positioned to do this than a random person. We can do this by going and working for a startup and dumping money in to exercise options (arguably even riskier since now your job is also tied to its success), but not by just kicking in some cash unless you hit the accredited investor threshold. I should be able to choose to do this if I want to. Instead I can only put money in after the company is public and a lot of the early return has already been taken by people rich enough to be allowed to buy in earlier. Meanwhile I could go and gamble at a casino on slots without any proof that I'm rich enough to waste money that way.

jonas21 5y ago
If you've been in the industry for a while, you may already qualify as an accredited investor. The income threshold is $200K/year, which according to levels.fyi would easily be met by someone with a few years experience at a FAANG, for example. If not, you can also qualify by passing the Series 65 exam, which is a 3-hour multiple-choice test that anyone can take. You'll probably find that the biggest barrier is finding good startups who will take your money. The ones interested in taking a small amount of cash from some random person are also the least likely to succeed.
- gonehome 5y ago
  > The ones interested in taking a small amount of cash from some random person are also the least likely to succeed. Part of this is the result of the existing regulations making it a pain to do so.
  - Daishiman 5y ago
    I live in a place with no requirements to be an investor and it's still all the same. It's just in general a very, very bad idea.