What’s an easier path to wealth? PATH 1: VENTURE STARTUP - 95% chance of $0 - Tiny personal income while building startup until IPO/scale - Massive dilution (most founders end up owning 5-15%). $1BN market cap = $50-$150MM for founder. OR...
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Replying to @awilkinson
It's a fallacy to think that the fact that x% of startups fail implies that your probability of failing is x%. It's more a reflection of the distribution of ability among the people who start them.
42 replies 158 retweets 1,481 likes -
Replying to @paulg
80% of drivers think they are a better than average drivers... I’m talking to everyone, not YC cream of the crop. Even then, what is YC’s success rate? Huge respect for what you’ve built, but I assume failure rate is very high even at the top.
4 replies 3 retweets 93 likes -
Replying to @awilkinson
Talking to everyone, though, is not the same as talking to the median person. The advice to the median person should definitely be: do not start a startup. But advice to everyone should be: few are suited for it, but for those who are, the expected value is high.
5 replies 11 retweets 146 likes -
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Replying to @zachware @awilkinson
This is an edge case that's often a success from the founders' POV but a failure from the investors'. When it happens, many VCs feel they ought to extract something, e.g. sell the co to another portfolio co. I encourage founders to resist this.
1 reply 0 retweets 10 likes
And indeed, I don't know why VCs bother. This is not where the money is for them. That being so, if founders resist, the VCs will tend to back off.
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@paulg. Great, candid stuff.0 replies 0 retweets 3 likesThanks. Twitter will use this to make your timeline better. UndoUndo
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