Not Everyone Should Be a Founder (or a VC)

The Unsexy Path Just Be an Employee!

A few months back, I wrote the "how-not-to's" of angel investing, exploring the pitfalls and lessons learned along the way. Today, let's shift gears and tackle a related, yet distinct, topic: the entrepreneurial dream and the allure of venture capital.

We're bombarded with stories of unicorn startups and VC funds boasting astronomical returns. It's easy to get swept up in the hype and believe that founding a startup or becoming a VC is the golden ticket to wealth and success.

But here's the truth: not everyone is cut out for these roles. And that's perfectly okay.

The Harsh Reality of Startups and VC

Statistics paint a sobering picture:

• 90% of startups fail. The odds are stacked against you from the get-go.
• Only a small percentage of VC funds deliver returns that beat the market. The vast majority of investors don't see the massive returns often portrayed in the media.

So, where does that leave us? Does it mean abandoning the dream altogether? Absolutely, not but I want to show you another way.

The Unsexy, Yet Powerful Path

There's an alternative route, one that's often overlooked amidst the entrepreneurial frenzy: becoming a valuable employee at a high-growth startup.

Here's why this path can be incredibly rewarding:

• Learning and Growth: Startups offer unparalleled opportunities to learn and grow at an accelerated pace. You'll wear multiple hats, tackle diverse challenges, and gain invaluable experience across various aspects of the business.
• Equity and Upside Potential: Many startups offer equity as part of their compensation packages. This means you have a stake in the company's success and stand to benefit financially if it takes off.
• Being Part of Something Bigger: Contributing to a startup's journey from the ground up can be incredibly fulfilling. You'll be part of a passionate team, working towards a shared vision and making a real impact.
• Remember, joining a startup isn't just about the equity. Founders can easily see through those who are only in it for the potential financial gains. You need to genuinely believe in the company's mission and be willing to go the extra mile to contribute to its success.
• Think of it this way: you're investing your time, skills, and energy into the startup, just like an angel investor invests their capital.

Navigating the Startup Landscape: A Personal Lens

Choosing the right startup is like picking the perfect hiking trail – the scenery can be breathtaking, but the path might be filled with challenges. I've witnessed firsthand the transformative power of joining a company like Truecaller, where transparency and inclusivity were ingrained in their DNA. Everyone, from the office managers to the C-suite, was part of the journey, and the rewards were shared collectively. It was a beautiful testament to the potential of a truly equitable startup environment.

However, not all startups operate with such clarity. I've also encountered those who HIDE their equity programs in secrecy, leaving employees in the dark. While there's no one-size-fits-all approach, open communication, and clear expectations are crucial when it comes to employee equity.

Let's be real, joining a startup isn't for the faint of heart. It demands a healthy dose of risk tolerance and a long-term perspective. Life stages play a significant role too. As a new father, my risk appetite has definitely evolved compared to my younger, more adventurous days. Last year 2023 was the first year since 2017 that I didn't invest at all. Will see when I'm ready again, that is for another blog post??

Building Wealth, One Step at a Time

This "unsexy" path to wealth may not be as glamorous as launching your own venture or becoming a VC, but it offers a more realistic and sustainable approach for most people.

By focusing on personal growth, contributing to a company you believe in, and building your wealth through equity, you can achieve financial success while being part of something truly meaningful.

And who knows, maybe someday, with the experience and knowledge you've gained, you'll be ready to take on the challenges of entrepreneurship or angel investing yourself.