3 ms·
Opportunity cost != time valuation
by zackattack 18y ago
Opportunity cost != time valuation
- Tichy 18y agoWhy not?
- zackattack 18y agoBecause the VC is not paying you at a market rate for what your time could be. They are funding you because they think you will be successful. If you are successful, your ultimate outcome will be a multiple of your "market rate" over three years. Therefore, your hourly rate should be reduced.
- Tichy 18y agoI can not follow your logic. I never had VC investment, but I did not even think the VCs pay you. Even if they did, wouldn't you access your value by the expected outcome P(failure)0+P(success)10 billions? It also doesn't matter, because I still think the opportunity cost equation holds. If you decide now to become a waiter instead of an IT consultant, it costs you 70$ an hour to be a waiter (assuming waiters earn 10$/h and consultants 80$/h). I don't think there is a way around that.