Gustavo Arjones

You need baseline prosperity to even attempt startups. Insiders know it, outsiders don’t. Some observations in Silicon Valley : - Many founders in Bay Area come from a sound financial background. A founder got viral for paying himself 0 salary in SF, his mom is a CEO of public company. Do some research. - Dropout founder is an exception, not a norm. Most founders in Bay Area have studied from top universities. - You’d be surprised to see how many founders grew up around startups. ‘My dad built a company in 1990 and exited for 400M’, ‘this top VC was my uncle’, ‘I grew up in Palo Alto and joined computer club when I was 5’. The advantages of growing up in a tech hub compound. - The dropouts you see are from top universities. Also, they don’t drop out, they just defer their semesters. - Dropping out from Stanford gives you credibility. Dropping out from an unknown college signals laziness. You’re judged on signals here, ask any founder. - People who worked in big tech have saved a good chunk. Great way to start without worrying about burn! You’ll see many founders here with a big tech or startup experience. - People have deep networks in Silicon Valley. If they don’t, they build it. Networking on internet is all fine but in-person relationships still rule. - “What about YC, Thiel fellowship and others?” Many ppl drop out ‘after’ they get into these programs. The initial funding gives you runway to experiment. You can’t build if you’re constantly worried about burn. - “I need to follow my passion” - do it surely. However, someone has to fund your passion. Either your users, family or investors. If you’ve the confidence to do it, figure out the finances. Jumping straight out of airplane without parachute or knowing how to build it will lead to a fatal outcome. - Startups sound so fun from outside. 99% of time, you’re talking to users, fixing things, writing code. If someone made a documentary on startups, they’ll be shocked on how much work it is. - It’s easy to change the world if you don’t have to worry about paying bills. That’s why money is called ‘runway’. Good to have an exit, bootstrapped venture that made you money or people who believe in you. Otherwise you will take funding at horrible terms that can break your startup. - “VCs will fund me for my world changing idea” - nah. They fund founders with pedigree (good education/ work ex) and proof of work. Funding non-pedigree founders is an exception. Pick up portfolio of any VC and see background of founders, you’ll know. - VC funded startups is a game of chasing unicorns. The big bets. The billion dollar outcomes. It’s an extreme game, built for extreme people. It’ll take all your energy, focus and time. You need some advantages to play it. Lack of education, network or resources isn’t an advantage, especially if you didn’t grow up in ecosystem. “People in Silicon Valley drop out too, so should I to start up” - this thought has led to many bad outcomes. Be aware of what you’re signing up for and you can win the world! 🤟🤟