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Pumping my savings into a struggling company so that when it eventually fails I'm not only unemployed but also out of savings? That's a concentration risk I wou
by skrause 3y ago
Pumping my savings into a struggling company so that when it eventually fails I'm not only unemployed but also out of savings? That's a concentration risk I wouldn't want to have if I were a MariaDB employee.
- robocat 3y agoAnd yet it is a concentration risk that most founders choose. Founder's investment to start bootstrapped is often opportunity cost of time (years of work instead of earning salary). Maybe some cash invested too. Or with VC, after years of work a founder's biggest asset is the common shares that are worth $0 if company folds.
- foota 3y agoI mean, I certainly wouldn't invest all my savings, but like a year's or so worth of savings maybe.
- ho_schi 3y agoThe key words are “reasonable” and “concentration risk”. Companies not run by shareholders but employees are often unremarkable but do well in long term. From time to time family owned companies choose that path.