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The point the author is trying to make is to price that risk according to how Angel investors and VCs price that risk. One reason you may want to take a discou
by wtvanhest 15y ago
The point the author is trying to make is to price that risk according to how Angel investors and VCs price that risk.
One reason you may want to take a discount is that you are in partial control of its success. I also think that if you are going to join a start up you should believe that the VCs and Angels priced it incorrectly and that the chance of success is far greater.
- akkartik 15y agoBut investors get to spread their risk around. You are forced to keep all your eggs in one basket. The marginal utility of their cash investment is likely lower than that of your time investment. You have some control of its success, yes, but does it really compensate for the previous paragraph?