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If you want to make a good living with little risk, be a dev, a designer or something like that. Given that most startups fail, and of the ones that don't, most are only modestly successful, you'll probably be better off (from a purely economic standpoint) as a paid employee (or service provider) to a startup than as an entrepreneur starting one up. I think there's something magical (insane?) about doing your own startup.

Note: I don't have the hard data about this, but this seems to be the consensus (although those people never presented their data) and my anecdotal experience. Please, tell me if I'm wrong :)



Except the founder gets paid either way, and paid more than anyone else usually. If the business goes bust nobody takes his house, or his things - he just finds another job or starts another business with VC welfare.


I don't know if that's always true (at least, not for founders I want to work for). I worked at a startup where the founder totally ruined his personal credit, and was paid a small portion of what everyone else was making until well into profitability. I bought a beautiful house in a good neighborhood while working for him. He _still_ lives in a tiny rented condo.

If things work out, I'll walk away with enough to pay down some of my mortgage, and he'll be set for a life of luxury. But if things don't work out, then I still have a great house, and plenty of savings. He'll have no credit, and no savings.

It seems like a poor use of funding to pay the founder a great salary (i.e. more than key employees) at an early stage startup: before profitability, or even early into profitability.




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