Hey everyone! I'm Ben, and I will be doing an AMA for Effective Giving Spotlight week. Some of my relevant background:
- In 2014 I cofounded a company for earning to give (EtG) reasons (largely inspired by 80k), which was later successfully acquired.
- Since late 2018 I have been doing direct work, currently as Interim Managing Director of CEA.
- (With a brief side project of founding a TikTok-related company which was similarly acquired, albeit for way less money.)
- I've had some other EtGish work experience (eight years as a software developer/middle manager, a couple months at Alameda Research) as well
- Additionally, I’ve talked to some people deciding between EtG and direct work because of my standing offer to talk to such folks, so I might have cached thoughts on some questions.
You might want to ask me about:
- Entrepreneurship
- Trade-offs between earning to give and “direct work”
- Cosmetics and skincare for those who (want to) look masculine
- TikTok
- Functional programming (particularly Haskell)
- Or one of my less useful projects
- Anything else (I might skip some questions)
I will plan to answer questions Thursday, November 9th. Post them as comments on this thread.
See also Jeff’s AMA, which is on a similar topic.
The numbers in this article seem higher to me than the value I would place on most tech people doing direct work, so a naïve answer is "yes, if you can get into YCombinator you should probably do that." However, YC is extremely competitive and "being able to make a lot of money" is often correlated with "being valuable in direct work" so it's hard to make a general statement. "Spend six months starting a company and then shut down if you don't get into a top incubator" doesn't seem like crazy advice to me.
Regarding risk: returns to entrepreneurship are very fat tailed, and there are theoretical as well as empirical arguments about why we should expect this (e.g. entrepreneurs take on nondiversifiable risk, and you would expect them to need substantial additional compensation to offset this). That being said: I think the data set people use can skew these results, e.g. YCombinator intentionally invests in high risk companies, so it's unsurprising that YC founders have fat tailed results.
I don't understand the strategy of creating a lower risk business in order to fund a higher risk business though: if you are aligned with your investors (and if your goal is "make money" then you probably are aligned), then it seems strictly better to use their money instead of your own?