[earl]

There seem to be 4 routes:

1 have rich parents (not kidding)

2 work part time until you can get angel investment

3 a pre-angel incubator ala YC

4 live somewhere really cheap and use savings

In the two startups I've worked for, I personally saw routes 1 and 3.

[cperciva]

1 have rich parents (not kidding)

I'd broaden that category to "have tolerant parents". My parents aren't rich, but they have a basement which would be empty if I wasn't living here.

[netsp]

All 4 could be broadened:

1 have rich parents (not kidding) >> Parents

2 work part time until you can get angel investment >> Another income

3 a pre-angel incubator ala YC >> Small investment/tor

4 live somewhere really cheap and use savings >> Savings

I think all 4 imply also living cheap

[earl]

Yes, but it's not just living expenses -- I was thinking along the lines of can your parents float you $25K for startup costs such as equipment and working capital? How about $100K? Is it a big deal if they don't get it back, ie is this their retirement, or is just kind of a bummer? And so forth...

The startup I was thinking of needed the money in order to establish business relationships -- the business they are in requires quite a bit of working capital. The founder's parents basically gave him $150K and they aren't so rich that they wouldn't notice, but if he had lost the money, it wouldn't have been a particularly big deal. (Sorry, I'm not trying to play coy, so if anybody is interested, email me and I'm happy to give names, but I just don't want this account to be googleable.)

Edit since I can't reply and want to go to sleep -- yes, this makes your parents angels, but getting angel investment suffers from who you know -- how many people grow up knowing angels? So your parents offer three major advantages:

1 - you know them already

2 - you know them already

3 - they are probably more willing to take a chance on you... and you know them already

[cperciva]

I think when you get into the "parents give you $150k" range, the parents in question fall more into the category of angel investors than anything else.

[_b8r0]

Can I add another route? 5 Using an existing profitable business to incubate a startup within.

The consulting business I run funds the development of a number of skunkworks projects, and it looks like two of them will see light in their own right.

[pageman]

yup. we're incubating 2-3 projects this way right now :)

[stevejalim]

1b could be 'have a decently paid wife/husband/partner' - that approach is working for me, so far, tho I am still doing some freelance dev to keep things relativley fair

[coopr]

This works for me - barely. While the finances are fine, the stress level at home can get out of hand. Having a well-paid spouse who is willing to accept the uncertainty inherent in early-stage, pre-funding startups is MUCH more difficult to arrange than just the well-paid part.

[csomar]

"1 have rich parents"

They don't need to be soooo rich (you don't need millions to start), if they understand what you do, they'll support you. Also living within your family will reduce costs: rent + fooding + other things.

I'm doing it from home and starting slowly but surely