Can you explain the start-up lifestyle?

[Anonymous]

Why do people act as angel investors? For every one LinkedIn or Subway, aren't there a million failed start ups that no will ever hear about? Seems like a surefire way to lose money unless you are the lucky type -- esp the angel investors who are busy professionals and not full time investors; I feel like they could be swayed by an amazing pitch without really understanding the financials or the product/service being offered. And I assume it's like owning stock, correct, you don't have a say on how the company is managed?

[Anonymous]

Anonymous wrote:What many seem to be missing, is that angel investors are not schmucks. If they are investing, they believethere is a viable business.

A lot of them are built on personal relations; they may have no idea about the business or the market or the tech, but they believe in the person; OPs buddy may just have the right connections and the right charm.

[Anonymous]

I'm just posting to say the OP's friends' idea is a fundamentally bad one. There is a reason dressing supplies are white.

No one wants coloured supplies.

He'll soon be annoying you with his next venture, I'm sure.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Yes people, you are right. All people with money are stupid. And they just throw their money at other people. And they are broke right away. And no one works for their money. And they all have really easy jobs that a monkey could do. You happy now?

What a pitiful bunch.

My best friend is loaded (loaded) from a combination of inheritances and starting her own company (that a monkey and 99% of the population does not do - she's that smart, not just text book smart, but brilliant in other ways that make her successful).

If you ask her about her financials, she'll either laugh in your face, or tell you bad information you are sure to perpetuate to your suburban neighborhood pool cronies. And we'll have a good laugh, because she would never even tell me that kind of information with any kind of accuracy (understandably).

OP, worry about yourself a little more.

She was able to succeed b/c she was able to take risks that most people who must support themselves and have no safety net cannot. That's the secret sauce to start-up success; there are plenty of brillant people with good ideas but unable to take the flyer if it doesn't pan out b/c it would literally put them on the street.

"If you say so????""

I'm sorry, but your astute rebuttal went over my head, can you elaborate? Being able to take the risk and not end up penniless and unemployed, how is that not an advantage?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Yes people, you are right. All people with money are stupid. And they just throw their money at other people. And they are broke right away. And no one works for their money. And they all have really easy jobs that a monkey could do. You happy now?

What a pitiful bunch.

My best friend is loaded (loaded) from a combination of inheritances and starting her own company (that a monkey and 99% of the population does not do - she's that smart, not just text book smart, but brilliant in other ways that make her successful).

If you ask her about her financials, she'll either laugh in your face, or tell you bad information you are sure to perpetuate to your suburban neighborhood pool cronies. And we'll have a good laugh, because she would never even tell me that kind of information with any kind of accuracy (understandably).

OP, worry about yourself a little more.

She was able to succeed b/c she was able to take risks that most people who must support themselves and have no safety net cannot. That's the secret sauce to start-up success; there are plenty of brillant people with good ideas but unable to take the flyer if it doesn't pan out b/c it would literally put them on the street.

"If you say so????""

I'm sorry, but your astute rebuttal went over my head, can you elaborate? Being able to take the risk and not end up penniless and unemployed, how is that not an advantage?

I'm not PP, but I'd say the reaosn is when you're hungry, you're more willing to work for it and take risks (probably more likely with men). I'm the PP who started their own company from nothing. In the early days, I _had_ to make it work or I'd be done. That meant I worked harder and longer than anytime before -- I sort of had no choice.

[Anonymous]

Anonymous wrote:I typically don't care how they make their money, yet I'm kind of stunned by the number of my peers who have launched start-ups recently that don't seem to do much (not in the tech space -- where people work HARD to develop an idea and sell it to a bigger company). Is this just a fancy way of now taking a year or two off in your 20s/early 30s -- the way people used to travel for a while between jobs?

Saw a family friend tonight though -- who is always a jerk to everyone about how they aren't good enough (in that -- oh you're JUST an in-house lawyer now, oh) -- a year and a half ago he launched a start up which for lack of a better description makes/sells bandages -- the kind of product that J&J and 3M has supplied for generations. Of course his are fancier fabrics, colors etc. He spends the majority of his time going to medical conferences (he isn't a doctor/nurse but I guess is looking for hospital clients) and alternatively going to venture cap events and rubbing elbows with finance types to get funding. How does one do this for a yr and a half?? He has a top 10 MBA and worked at Goldman Sachs for about 18 months, so I'm sure he has savings -- but he was an associate, not a higher-up, and he lives in Manhattan which isn't cheap. His parents have wealth but not like Rockefeller wealth -- but what 32yr old man with a good education is ok turning to mommy and daddy every time he needs a few thousand whether to pay his bills or fly to Texas for some conference?

Is there an obvious funding source that I'm missing -- bc this seems like a sweet life for a few years to name yourself CEO of something, travel around, and not be chained to a desk/boss/assignments. Is there that much start up funding out there that anyone can scare up a few hundred thousand and just live on that for a yr or two under the guise of a business? Or are you typically funding this for yourself or thru family money?

Are you sure this isn't a Portlandia episode?

[Anonymous]

Anonymous wrote:I've been in various startups for nearly 20 years now (ouch I feel old.. I did it straight out of college). Back then, startups weren't "cool" and there were no big cheerleading events for them and so on. Now there are plenty such events (just go to a DC Tech meetup), and jurisdictions fight to get startups to move there, and they even have a TV series about it (Silicon Valley, on HBO). In short, it's now cool to do startups so everyone wants to.

There's also a lot of money floating around. Your friend who was at GS and has an MBA from a top 10 school can easily raise some angel financing -- they likely have enough contacts. Also, angel investors aren't as sophisticated -- think a bunch of rich doctors or lawyers with some extra money to throw around (interesting trivia: next time you eat at Subway, read the wrapper carefully and you'll see "Copyright Doctor's Associates" on it... guess who started Subway?). They aren't going to really scrutinize financials, especially after they've handed over their $$, as they don't know what to look for anyway. Someone who was at GS can probably put together a really nice Powerpoint and really sell it to investors.

The problem is people like this often don't understand startup culture and what it really means. They come from corporate world, which involves expensive travel, expense accounts, etc. Meanwhile in the startup world, it's about saving as much money as possible. For some conferences, we'd all pile into someone's car and drive 8 hours to get there, since it saved a huge amount of money. We'd stay at budget motels and double-up in the rooms. That's the startup culture, because you're short on cash. It also meant working 6-7 days a week, 12/hour days, because it's the only way you're going to win.

People coming from a corporate background often don't understand this culture. They don't understand what it is to be "hungry" and cash-starved.

That said, I've seen a number of corporate types go into startups, usually at a later stage, and do really well. They bring some level of order to the chaos that is startup culture. That can be good when startups reach a certain point when it's no longer 10-15 people all working in the same room.

My current "startup" (now 10 years old) generates a very significant HHI and I only have to work 30 hours a week, but it was a long and difficult path to get the company to this stage. I started it entirely from my meager savings, and adjusted my lifestyle and company spending accordingly. I didn't eat ramen at every meal, but I did eat lots of eggs, rice, and cheap vegetables, that's for sure.

If your current company and/or other start-ups are not tech based, do you have any suggestions or resources for tapping into the local entrepreneurial community? Not for money but to connect with like minded individuals, possibly for mentoring/advising/support.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Yes people, you are right. All people with money are stupid. And they just throw their money at other people. And they are broke right away. And no one works for their money. And they all have really easy jobs that a monkey could do. You happy now?

What a pitiful bunch.

My best friend is loaded (loaded) from a combination of inheritances and starting her own company (that a monkey and 99% of the population does not do - she's that smart, not just text book smart, but brilliant in other ways that make her successful).

If you ask her about her financials, she'll either laugh in your face, or tell you bad information you are sure to perpetuate to your suburban neighborhood pool cronies. And we'll have a good laugh, because she would never even tell me that kind of information with any kind of accuracy (understandably).

OP, worry about yourself a little more.

She was able to succeed b/c she was able to take risks that most people who must support themselves and have no safety net cannot. That's the secret sauce to start-up success; there are plenty of brillant people with good ideas but unable to take the flyer if it doesn't pan out b/c it would literally put them on the street.

"If you say so????""

I'm sorry, but your astute rebuttal went over my head, can you elaborate? Being able to take the risk and not end up penniless and unemployed, how is that not an advantage?

Sometimes experience can not be explained (or pontificated). But by all means, continue your astute rebuttal.....

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Yes people, you are right. All people with money are stupid. And they just throw their money at other people. And they are broke right away. And no one works for their money. And they all have really easy jobs that a monkey could do. You happy now?

What a pitiful bunch.

My best friend is loaded (loaded) from a combination of inheritances and starting her own company (that a monkey and 99% of the population does not do - she's that smart, not just text book smart, but brilliant in other ways that make her successful).

If you ask her about her financials, she'll either laugh in your face, or tell you bad information you are sure to perpetuate to your suburban neighborhood pool cronies. And we'll have a good laugh, because she would never even tell me that kind of information with any kind of accuracy (understandably).

OP, worry about yourself a little more.

She was able to succeed b/c she was able to take risks that most people who must support themselves and have no safety net cannot. That's the secret sauce to start-up success; there are plenty of brillant people with good ideas but unable to take the flyer if it doesn't pan out b/c it would literally put them on the street.

"If you say so????""

I'm sorry, but your astute rebuttal went over my head, can you elaborate? Being able to take the risk and not end up penniless and unemployed, how is that not an advantage?

I'm not PP, but I'd say the reason is when you're hungry, you're more willing to work for it and take risks (probably more likely with men). I'm the PP who started their own company from nothing. In the early days, I _had_ to make it work or I'd be done. That meant I worked harder and longer than anytime before -- I sort of had no choice.

+1

But some are incredulous, and people think if mommy and daddy (or an "angel investor") don't pay their way - be it tuition or VC, "how on earth can they survive????? SURELY they have the upper hand in life SOMEHOW!!!!" :sarcasm:

People are jealous, OP. Know that, and you will be fine.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I typically don't care how they make their money, yet I'm kind of stunned by the number of my peers who have launched start-ups recently that don't seem to do much (not in the tech space -- where people work HARD to develop an idea and sell it to a bigger company). Is this just a fancy way of now taking a year or two off in your 20s/early 30s -- the way people used to travel for a while between jobs?

Saw a family friend tonight though -- who is always a jerk to everyone about how they aren't good enough (in that -- oh you're JUST an in-house lawyer now, oh) -- a year and a half ago he launched a start up which for lack of a better description makes/sells bandages -- the kind of product that J&J and 3M has supplied for generations. Of course his are fancier fabrics, colors etc. He spends the majority of his time going to medical conferences (he isn't a doctor/nurse but I guess is looking for hospital clients) and alternatively going to venture cap events and rubbing elbows with finance types to get funding. How does one do this for a yr and a half?? He has a top 10 MBA and worked at Goldman Sachs for about 18 months, so I'm sure he has savings -- but he was an associate, not a higher-up, and he lives in Manhattan which isn't cheap. His parents have wealth but not like Rockefeller wealth -- but what 32yr old man with a good education is ok turning to mommy and daddy every time he needs a few thousand whether to pay his bills or fly to Texas for some conference?

Is there an obvious funding source that I'm missing -- bc this seems like a sweet life for a few years to name yourself CEO of something, travel around, and not be chained to a desk/boss/assignments. Is there that much start up funding out there that anyone can scare up a few hundred thousand and just live on that for a yr or two under the guise of a business? Or are you typically funding this for yourself or thru family money?

Are you sure this isn't a Portlandia episode?

+1

Assume people are talking out of the wrong hole. This is D.C.

[Anonymous]

Anonymous wrote:I'm just posting to say the OP's friends' idea is a fundamentally bad one. There is a reason dressing supplies are white.

No one wants coloured supplies.

He'll soon be annoying you with his next venture, I'm sure.

Say what? Who is "he"? Who are you talking to? Please elaborate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I typically don't care how they make their money, yet I'm kind of stunned by the number of my peers who have launched start-ups recently that don't seem to do much (not in the tech space -- where people work HARD to develop an idea and sell it to a bigger company). Is this just a fancy way of now taking a year or two off in your 20s/early 30s -- the way people used to travel for a while between jobs?

Saw a family friend tonight though -- who is always a jerk to everyone about how they aren't good enough (in that -- oh you're JUST an in-house lawyer now, oh) -- a year and a half ago he launched a start up which for lack of a better description makes/sells bandages -- the kind of product that J&J and 3M has supplied for generations. Of course his are fancier fabrics, colors etc. He spends the majority of his time going to medical conferences (he isn't a doctor/nurse but I guess is looking for hospital clients) and alternatively going to venture cap events and rubbing elbows with finance types to get funding. How does one do this for a yr and a half?? He has a top 10 MBA and worked at Goldman Sachs for about 18 months, so I'm sure he has savings -- but he was an associate, not a higher-up, and he lives in Manhattan which isn't cheap. His parents have wealth but not like Rockefeller wealth -- but what 32yr old man with a good education is ok turning to mommy and daddy every time he needs a few thousand whether to pay his bills or fly to Texas for some conference?

Is there an obvious funding source that I'm missing -- bc this seems like a sweet life for a few years to name yourself CEO of something, travel around, and not be chained to a desk/boss/assignments. Is there that much start up funding out there that anyone can scare up a few hundred thousand and just live on that for a yr or two under the guise of a business? Or are you typically funding this for yourself or thru family money?

Are you sure this isn't a Portlandia episode?

It's for real. Has an official website with a product for sale, he goes to conferences and trade shows and shows the product.

[Anonymous]

[quote=Anonymous

If your current company and/or other start-ups are not tech based, do you have any suggestions or resources for tapping into the local entrepreneurial community? Not for money but to connect with like minded individuals, possibly for mentoring/advising/support.

Your local chamber of commerce, or the local equivalent of this: http://rockvilleredi.org/

Also check the SBA -- they should have a list of local groups.

[Anonymous]

Anonymous wrote:I'm just posting to say the OP's friends' idea is a fundamentally bad one. There is a reason dressing supplies are white.

No one wants coloured supplies.

He'll soon be annoying you with his next venture, I'm sure.

This 8 year old girl seems to be doing just fine with her alternative and concept. Most people are not entrepreneurial and don't have the ability to think beyond the scope of being an employee, but that doesn't make any idea fundamentally bad or flawed.

http://www.womenyoushouldknow.net/7-year-old-girl-inventor-makes-history-shark-tank/

[Anonymous]

Yes people, you are right. All people with money are stupid. And they just throw their money at other people. And they are broke right away. And no one works for their money. And they all have really easy jobs that a monkey could do. You happy now?

What a pitiful bunch.

My best friend is loaded (loaded) from a combination of inheritances and starting her own company (that a monkey and 99% of the population does not do - she's that smart, not just text book smart, but brilliant in other ways that make her successful).

If you ask her about her financials, she'll either laugh in your face, or tell you bad information you are sure to perpetuate to your suburban neighborhood pool cronies. And we'll have a good laugh, because she would never even tell me that kind of information with any kind of accuracy (understandably).

OP, worry about yourself a little more.

Yes I have seen this before...wait a few years when she has burned through the inheritance and ask her about financials.