alt Hacker NewsI spent a few years studying the ‘startup economy’ after a 20 year career at MSFT that left me with some meager capital, including a half dozen Angel investments and running an Angel investment fund LLC (SPAC as they would call it today).
Never saw a startup succeed that didn’t come with substantial founder capital, across a couple hundred evaluations. Does it happen? Sure. Is it the model for new product generation that people with <$250k of personal liquid assets can bring a new product to market? Not really.
‘You got to have money to make money’ is a real thing.
Yeah, I know I’m posting on YComb’s forums, but if you think the capital YComb itself gives to ‘good ideas’ is enough to succeed, that’s silly. It’s the follow on investment capital that brings a new concept to market, and that comes with odious strings for people underendowed with their own capital.
E.g. startups are still a rich man’s game.
There's an analogy I've read before, couldn't tell you where, that goes something like:
Startups are like a roulette wheel at a fancy casino. Most people can't even afford to get in the door. Middle class people can afford to maybe take one or two spins on it, if they go all in. Rich people can spin it as many times as they like
As someone who grew up on the lower end of middle class this rings really true to me. I don't have access to the kind of capital to build a dream business. I could probably take one shot at it, if I put my house up as collateral for a loan to get me started
It's too risky for me. But if I were a multi millionaire I don't think I'd think twice about giving it a shot