4 ms·
> Just since 2023, I have had: > One company that raised over $100M, with my shares at one point valued at over $1M on paper, acquired in a fire sale that retu
by bayarearefugee 1y ago
> Just since 2023, I have had:
> One company that raised over $100M, with my shares at one point valued at over $1M on paper, acquired in a fire sale that returned zero to early investors
> Two others that were also “acquired” with some fanfare in the media, but returned nothing to early investors
> Four companies shut down after being unable to get to profitability or fundraise
> Four others that raised money but with painful recapitalizations that effectively wiped out early shareholders
TL;DR - Angel investing became too much like being an early employee at a startup always was, except it was actual money being lost instead of sweat equity.
- mnoronha 1y agoright -- much of the reasoning is also an argument against being an early employee. the main difference is the employee probably has more leverage against being diluted in later rounds.
- bombcar 1y ago“Early employee” used to mean 90% of boring tech job salary + some gambling options. Now it’s often 40% or lower of a tech salary and some gambling options
- dhruvrrp 1y agoIsn't it exactly the opposite? It used to be low salary + gambling, but now that most people know how easy it is to screw early employees, folks ask for high(er) salary + gambling