[robocat]

The “unicorn plan” is highly leveraged, high risk, and founders ignore the Kelly Criterion for their costs (especially their time).

I would love to see the average return for the founders of ycombinator startups. Given the power law (Pareto) distribution, it can probably be calculated by knowing the number of founders from 2005 to 2010, and some rough estimates of returns for the major ycombinator success stories.

VC as an fund category has poor returns (“the Cambridge Associates U.S. Venture Capital Index averaged just 5.06% per year between 2000 and 2020”). Also VC returns compared with founders equity: have higher seniority (preferential), lower volatility, diversity, and the chance of getting the necessary outlier success story returns.

The median/average founder in the market is a loser.

Do a funded startup for social status, to learn, to gamble, or for kicks. Don’t become a funded founder because it makes financial sense for an individual.