fouunder or angel investor

Background about myself:

I made about 600k/year when after 3 years from college at airbnb due to IPO. Airbnb stock price 3x when IPO compared to my initial grant price.

I am making 800k/year now after 5 years from college since I joined this new start up during series C and the 800k is calculated based on the recent tender offer from investor. Company stock 3x after I joined.

I will be making about 2M/ year once company IPO ( assuming 4x stock growth in the next 2 years).

I am doing angel investment on the side and I am developing tool for that. Think about deal notification, deal selection by modeling, deal searching, deal data collection and manage.

I am 29 years old.

My question is what is the best way for me to leverage with my experience to make more money.

  1. Should I become a founder for a new start up?

  2. Or should I start a VC and focus on investing and advising other start ups?

 
Most Helpful

I will be making about 2M/ year once company IPO ( assuming 4x stock growth in the next 2 years).

I think you should post this in the HF forum and get some reactions before you bank on this... [dickthesellsider]

I don't think you have enough of a network to become a VC yet. Usually you have to have a greater track record of success to have the network. Now, you may have a unique entrepreneur network we're not privy to, but without that it's nearly impossible to get into the right pre-seed and seed checks where you are before major institutional capital. If you do have a secret sauce network, then absolutely 100% milk that dry and don't wait a minute before opening up shop. However, since you're asking on WSO I'm nearly certain it's not such an incredible network that you already know you need to chase that down immediately. so in that case I think founder is probably your best bet for now and then later move into more angel investing. I can't tell you how many Tom Dick and Jane garbage funds there are from people who joined a company at a growth stage and think they know the secret sauce vs. how many actual entrepreneurs set up shop and can give phenomenal know-how to those they source from their truly unique networks as founders. There's something in the early part of the journey that you can't replicate. Just my .02. Happy to expand.  

 

"I don't think you have enough of a network to become a VC yet." This is an interesting point that you raised. Not directly related to OP, but I was wondering what jobs in finance don't necessarily require a lot of soft or people's skills. My understanding is that in IB/VC/GE it should be pretty important. But what about buyout PE and HF types of positions? Thank you.

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