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Comment by scarface74 | Hacker News Reader

Work at startups because you’ll work with people who have risk profiles that are much more likely to generate outsized returns as a group.

This is statistically not true. S&P 500 Index funds have outperformed VC's as a group for any reasonable time period.

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I can imagine this to be true but do you have a source for that information?

https://www.vox.com/2014/9/14/6137473/venture-capital-return...

Thanks for the links! I am aware of the Buffet's bets but I did have a feeling that some VCs can be quite profitable especially the ones which invest in future government contractors and/or future surveillance facilitators.

The VCs are always profitable - for themselves. They get 20% returns no matter what. Their investors on the hand....

You’re making this (single startup) v. (single S&P company). That’s not how it works. Prove yourself at being an adept generalist and you’ll, over time, create access to the most ambitious people and companies.

I’m doing just the opposite. I’m comparing VC funds in the aggregate to stocks in the aggregate using VC funds returns as a proxy for startup returns.

I think that’s fair. By definition you can’t invest in bootstrapped “lifestyle companies” and they rarely have “outsized returns”.

There are a lot of “ambitious people” who have failed that you never hear about.

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