An investor puts $20k in 15 companies and gets perhaps $50k back. Over the sum of his companies he's getting quite a lot of money for doing nothing but having a few dinners and answering some emails.
On the other hand, these guys are making perhaps $300k each, which they can easily make as highly capable consultants. And they end up with nothing much after that, just the chance to work even more.
The problem is not venture capitalists, it's those "brand name" investors who are putting $20k in many many companies.
The "brand name" investors are exactly the ones that don't "chillax". Casual angel investors usually lose money. The ones that have strong deal-flow don't get that by just occasionally showing up in Mountain View with a checkbook. Also note that most of the "super angels" at this point are really just mini-VCs. Conway, McClure, Sacca, et al are mostly investing other people's money.
Ok, I buy that you're not trolling, but you're assuming your conclusion. How do you know the investor gets $50K back? It's a lot harder to make money off startups than that.
If what you're saying is true, then founders in general (who leap at the chance to take these deals) are dupes. That doesn't seem very likely.
Comments
An investor puts $20k in 15 companies and gets perhaps $50k back. Over the sum of his companies he's getting quite a lot of money for doing nothing but having a few dinners and answering some emails.
On the other hand, these guys are making perhaps $300k each, which they can easily make as highly capable consultants. And they end up with nothing much after that, just the chance to work even more.
The problem is not venture capitalists, it's those "brand name" investors who are putting $20k in many many companies.
The "brand name" investors are exactly the ones that don't "chillax". Casual angel investors usually lose money. The ones that have strong deal-flow don't get that by just occasionally showing up in Mountain View with a checkbook. Also note that most of the "super angels" at this point are really just mini-VCs. Conway, McClure, Sacca, et al are mostly investing other people's money.
Ok, I buy that you're not trolling, but you're assuming your conclusion. How do you know the investor gets $50K back? It's a lot harder to make money off startups than that.
If what you're saying is true, then founders in general (who leap at the chance to take these deals) are dupes. That doesn't seem very likely.