4 ms·

You are thinking small and that’s fine. It is wonderful to bootstrap an app and make income. However some ideas are much larger and need a big team and years of

You are thinking small and that’s fine. It is wonderful to bootstrap an app and make income. However some ideas are much larger and need a big team and years of effort before the big payoff.

scarface74 5y ago
And then only 10% “payoff” for the investors, even fewer payoff for the employees.
- nradov 5y ago
  Venture capital as an aggregate investment class might only generate returns in the 10% range, but no VC would invest in an individual deal with such a low expected return. For early stage A-round deals they're targeting something like a 1000% return, and then those targets decline somewhat for later rounds.
  - scarface74 5y ago
    Which is fine for the VC. They are well diversified. It sucks for employees.
    - nradov 5y ago
      How does it suck for employees? They still get paid. Any stock options or grants are essentially a lottery ticket. Anyone taking a job offer expecting to get rich on that basis is a fool.
      - scarface74 5y ago
        Private companies usually pay less in tech in cash than public companies cash+RSUs. Even in the current brutal stock market environment, at least your RSUs are guaranteed to be worth something and you can diversify when you vest.
TheRealNGenius 5y ago
don't know why you're being downvoted. You just presented objectively true facts.
- adventured 5y ago
  I didn't downvote, but I'm fairly certain the downvotes come from the "you're thinking small" part - it comes across as condescending, even if it wasn't meant that way. If the parent chopped off the first sentence it would dramatically change the perceived tone toward a neutral to positive one. That is, the first sentence is largely unnecessary (it adds nothing other than the risk of people taking it quite negatively). Like so: It is wonderful to bootstrap an app and make income. However some ideas are much larger and need a big team and years of effort before the big payoff.

You are thinking small and that’s fine. It is wonderful to bootstrap an app and make income. However some ideas are much larger and need a big team and years of effort before the big payoff.

scarface74 5y ago

And then only 10% “payoff” for the investors, even fewer payoff for the employees.

nradov 5y ago
Venture capital as an aggregate investment class might only generate returns in the 10% range, but no VC would invest in an individual deal with such a low expected return. For early stage A-round deals they're targeting something like a 1000% return, and then those targets decline somewhat for later rounds.
- scarface74 5y ago
  Which is fine for the VC. They are well diversified. It sucks for employees.
  - nradov 5y ago
    How does it suck for employees? They still get paid. Any stock options or grants are essentially a lottery ticket. Anyone taking a job offer expecting to get rich on that basis is a fool.
    - scarface74 5y ago
      Private companies usually pay less in tech in cash than public companies cash+RSUs. Even in the current brutal stock market environment, at least your RSUs are guaranteed to be worth something and you can diversify when you vest.

TheRealNGenius 5y ago

don't know why you're being downvoted. You just presented objectively true facts.

adventured 5y ago
I didn't downvote, but I'm fairly certain the downvotes come from the "you're thinking small" part - it comes across as condescending, even if it wasn't meant that way. If the parent chopped off the first sentence it would dramatically change the perceived tone toward a neutral to positive one. That is, the first sentence is largely unnecessary (it adds nothing other than the risk of people taking it quite negatively). Like so: It is wonderful to bootstrap an app and make income. However some ideas are much larger and need a big team and years of effort before the big payoff.