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This could be an amazing investment depending on who your mentor is. If Warren Buffett invested $100k in me[1] for 10% (valuing me at $1m) of my future income I
by startupfounder 14y ago
This could be an amazing investment depending on who your mentor is. If Warren Buffett invested $100k in me[1] for 10% (valuing me at $1m) of my future income I would do it for the sole fact that I would have a direct line to the Warren Bat Cave, that would be priceless. If Joe Schmoe wanted to invest in me I wouldn't do it. The question is essentially will the mentor help me increase my lifetime earnings (and lifetime happiness) more then the cost of the mentorship. I could just ask for $1m put it in a index fund, get my 7% annual income of $70k and give my investor $7,000/year and be set for life. The flip side is many mentors/advisors will not invest in your startup but provide their network and mentorship while maybe only asking for 0.25% of your startup, not lifetime earnings.
I would like to see this list of mentors, but for now I wouldn't go through upstart.com...
[1] http://www.youtube.com/watch?v=WnPoCsTHIYg http://www.youtube.com/watch?v=WnPoCsTHIYg
- ipince 14y agoThe list of (pilot) mentors/backers is there. They're not Joe schmoes. Investments seem to be in the 25-50k range, nowhere near 1M. "Return" is some percentage of future income for next 10 years, not lifetime.
- coopdog 14y agoI imagine it'd be pretty amazing for your resume too 'personally backed by Warren Buffet/Steve Wozniak/etc', which alone could also offset the cost of paying dividends for the right investors In the flip side, will VC's start demanding these types of arrangements in case the startup folds but your next one doesn't