Anyone investing in startups?

[nickwm21]

The term “startup” annoys me.

It’s a common term thrown around college campuses. “I want to work for a startup when I graduate!”

Is it a brand new entrepreneurial hotdog cart chain or a some biotech company that’s been around for 6 years, tryin to get bought by big pharma? Both are considered “startups”....




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[swissiphic]

Would you like to be the first employee of Helping Hands™?

Hellz yeah. The sooner we bring it to product testing phase, the sooner my ski tours that require skins on skis while ski dragging and wearing ascension aid plates transition times go from 27 minutes to 2.7 minutes. Too many steps; need more hands for simu/discrete tasks for sure. Sorry Margo... last comment with thread drift...

[Timberridge]

The term “startup” annoys me.

I'm guessing they call it that because "a group of individuals with a dream and no money" might be too wordy.

[abraham]

I'm guessing they call it that because "a group of individuals with a dream and no money" might be too wordy.

Are you sure you don't mean "a company with lots of money and perks, right up until they fail to raise the next round of funding and everything disappears" ?

[Timberridge]

I've heard that term used in CA.

Perhaps it's a regional thing, like pop and soda?

[mall walker]

Are you sure you don't mean "a company with lots of money and perks, right up until they fail to raise the next round of funding and everything disappears" ?

the essential thing for being considered a startup is that the company doesn't actually MAKE any money

[muted]

Hellz yeah. The sooner we bring it to product testing phase, the sooner my ski tours that require skins on skis while ski dragging and wearing ascension aid plates transition times go from 27 minutes to 2.7 minutes. Too many steps; need more hands for simu/discrete tasks for sure. Sorry Margo... last comment with thread drift...

Are those unusually large urinal backsplash devices attached to your feet?

[ACH]

Are you sure you don't mean "a company with lots of money and perks, right up until they fail to raise the next round of funding and everything disappears" ?

BOOM!

[Timberridge]

Are those unusually large urinal backsplash devices attached to your feet?

Like their cheese, those are Swiss versions of home plate.

[Stu Gotz]

I was involuntarily involved in a bunch back in the day. Being a shareholder of the company I worked for.

Hard to make money when you’re not in control. Would have made zillions if the powers that be had held on, but when they’re already super rich they do stupid things.


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My wife invested a very small sum in a local company. She didn’t expect to see a return, but wanted to be involved with a company that she thought had an awesome and very helpful product.

I worked for a (then) small financial technology company that got bounced around between a number of investment firms. On the third bounce, everyone below executive row got bought out. No big money for Stu.

[GoldMember]

I worked with tech startups for four years running a business accelerator. We didn't invest but helped coach the entrepreneurs with an eye toward being fundable and aligning them with potential investors. Ultimately, we helped them be introspective about their business and themselves as to whether they really had a solution to a problem and whether they should be the CEO or, maybe, CTO (or CIO) and have someone come in who could actually scale their product/service.

My first observation is that the leadership/people involved are the most important element. Second is the unique value proposition they had; what problem are they solving and how is that better than current solutions available. Third is market segments and size of market. Fourth is customer acquisition cost and subsequent scale-ability. From that, determine whether the pursuit is worth it; if not, fail fast. There's no shame in failing fast and learning from that experience. The biggest challenges we had with just about all of them is getting them to listen to their customers and pivot beyond their minimum viable product to meet what the market is telling them and to remain focused on an initial market/product where they can dominate.

On the people side (priority #1), too often people think they have invented a better mousetrap when they really haven't. They try to force-feed into the market rather than truly have something innovative that their chosen market values. On another side, too many look for investors so they can feather their own nests to some degree and wind up squandering investor funds on fancy office space, too fat of salaries for themselves and their co-founders while not even close to becoming profitable.

From my perspective, investing in startups is a game for people more risk-accepting than me. it's a numbers game; invest in ten, seven fail, two do okay, and one is a home-run. But, it takes a high level of diligence to even pick the ten, knowing seven will fail. If you don't really do your homework and pick carefully, the odds of picking ten failures are pretty high. Myself, no thanks. I'm too risk-averse to play that game. Good luck.

[skaredshtles]

Are you sure you don't mean "a company with lots of money and perks, right up until they fail to raise the next round of funding and everything disappears" ?

I need to start working for companies like this...

[Ted Striker]

I worked with tech startups for four years running a business accelerator.

Erlich! I've been wondering what happened to you.

[Viva]

The term “startup” annoys me.

I prefer "start-up", myself.

[Rideski]

That Mick Jagger was a real innovator.

[DBdude]

The term “startup” annoys me.

It’s a common term thrown around college campuses. “I want to work for a startup when I graduate!”

Is it a brand new entrepreneurial hotdog cart chain or a some biotech company that’s been around for 6 years, tryin to get bought by big pharma? Both are considered “startups”....




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i worked for a start up. they owe me money

and a good start up is well funded, it doesn't matter what they do

[The Suit]

and a good start up is well funded, it doesn't matter what they do

Huh? Like Theranos?

I was an investor in a Boston-area company called GiantLoop Networks. All-star team. All-star investors. $160 million in funding. It all went poof in the telecom crash.

[LeeLau]

I have provided legal and other services for startups and taken seed stock in lieu of legal services. I've had 1 "investment" out of 16 return money. In none of these cases did I expect the "investment" to return anything.

[DBdude]

good point both emails above

we had the opposite problem - lol - no money - in other words, we didn't get to market before the money ran out and we could not pedal the vaporware for any longer to investors

but yeah - it's a tough game. I don't think I will do it again. My lead on my team, this was his second, and the first one didn't turn out and the current venture is dying

It is a hell of a drug though

[cravenmorhead]

I own 1% of a brewery for an amount I can afford to not see again. It's been interesting being on the inside of the financial management of a small business, but for pure returns I could have done better with putting the same money in the S&P. It's been a worthwhile experience but I'm not on the hunt for other small businesses to invest in.

[TyWebb]

We already established in another thread that $100 is the number to invest if you want to get rich.

I'll go to $100, but expect six fingers.

If you are not a professional investor, or not so high net worth that you can make dozens of angel investments...then you really should only ever make a startup investment if you truly have an unfair advantage. There are only a couple...

-The founder is truly exceptional and has had a past exit and does not need your money, but will take it based on your personal friendship.

-The business is in the exact field in which you have worked your entire career and you have a novel insight about this opportunity that almost nobody else in the world realizes.

[dunfree]

I'm guessing they call it that because "a group of individuals with a dream and no money" might be too wordy.

that's a band.

[Danno]

I own 1% of a brewery for an amount I can afford to not see again. It's been interesting being on the inside of the financial management of a small business, but for pure returns I could have done better with putting the same money in the S&P. It's been a worthwhile experience but I'm not on the hunt for other small businesses to invest in.

Do they at least make good beer?

[mooseknuckles]

Erlich! I've been wondering what happened to you.

Read the title as ANYONE INVESTING IN SPACESHIPS

[exsparky]

My first observation is that the leadership/people involved are the most important element. Second is the unique value proposition they had; what problem are they solving and how is that better than current solutions available. Third is market segments and size of market. Fourth is customer acquisition cost and subsequent scale-ability.

On the people side (priority #1), too often people think they have invented a better mousetrap when they really haven't. They try to force-feed into the market rather than truly have something innovative that their chosen market values. On another side, too many look for investors so they can feather their own nests to some degree and wind up squandering investor funds on fancy office space, too fat of salaries for themselves and their co-founders while not even close to becoming profitable.

it's a numbers game; invest in ten, seven fail, two do okay, and one is a home-run. But, it takes a high level of diligence to even pick the ten, knowing seven will fail. If you don't really do your homework and pick carefully, the odds of picking ten failures are pretty high.

The above abridged quote is pretty accurate of my past. No home runs yet. 3 worked out and cut checks... somewhat regularly, two failed and gave me 70% of my money back, 4 were total zeroes. It seems people don't want to give up until they go a few million in the red and nobody will give them a nickel, show up for work for free or the tax man locks the doors.



Then there are the Enron craters looking for the right time to explode in Billion dollar failure...
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