Investing in startups is closer to betting on horse races than stuff like the S&P 500 or buying bonds.
There're a lot of people who will sell you systems. There's a lot of form guides. In a booming economy more people take a flutter on the fillies. And every once a while a thoroughbred emerges that is simply unstoppable.
But in general, only the bookies win.
The main difference is that in horse racing you can bet on a single horse and in the course of a few races, you'll probably bet correctly and make a little scratch.
In startups you can only bet the trifecta: you'll probably never hit it in your entire life, but the payoff is much higher if you do.
Investing in startups is closer to betting on horse races than stuff like the S&P 500 or buying bonds.
There're a lot of people who will sell you systems. There's a lot of form guides. In a booming economy more people take a flutter on the fillies. And every once a while a thoroughbred emerges that is simply unstoppable.
But in general, only the bookies win.
The main difference is that in horse racing you can bet on a single horse and in the course of a few races, you'll probably bet correctly and make a little scratch.
In startups you can only bet the trifecta: you'll probably never hit it in your entire life, but the payoff is much higher if you do.