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by fragmede
639 days ago
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Earlier in the letter, he writes: > Two of the fifty companies I backed are now among the 30 largest software companies in the world. And my IRR from inception has been consistently above 50% per year…for fifteen years. But then he also writes: > Right now I have enough money to do what I want. I don’t have enough money that other people do what I want. I don't know Jerry Neumann's financial situation better than he does, but the man's been doing VC early-stage investing since the 2000s so I find it hard to believe he doesn't have enough money to get other people to do what he wants. Maybe not self-fund a competitor to OpenAI in this environment, but that seems like a failure of his imagination on all the possible companies he could fund. $50k would be enough to get the right someone to do what he wants for a couple of months. |
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It sounds like he wants to be somewhat safe/financially secure without needing to work more, so I took that to mean “I have $2-6M USD in the bank”, which is the rough FIRE target (last I checked?). You could start a company with that of course, but it would be risking your nest egg to a serious degree, especially at a time where any serious person should be planning for—if not expecting per se-a stock market recession in the next few years.
Compare that to someone with, say, $100M. That’s enough money to build a team of $200-$400K/year engineers, open an office (or a zoom subscription!), and really take an honest swing at some product or other. $50k could hire you a contractor for a bit, but that’s just an addendum.