I disagree. If you're looking at every little startup idea, then yes...you probably won't get rich. Also, you won't get as rich as the founders; however, I have plenty of friends in the industry who have made millions (the typical goog, fbook, yada yada). I think a better suggestion is to shake out the idea before jumping on. I've made poor choices money-wise and I've made great choices in the past (very similar to equity investing)...
"Otherwise forget the extra hours"...
I think there's something in between. As a founder, it's a ridiculous amount of hours / extra stress, etc. Or you can work as an employee and give some extra but still realize it's a job and you aren't a founder. You don't have to work 80 - 100 hour weeks simply because you're at a startup. It's a pendulum with being a founder on one end and being a checked out employee at megacorp on the other. You can work tons of hours at a megacorp (mckinsey, etc.) or.. you can work a reasonable number of hours at a startup.
Apparently your friends are incredibly good at choosing startups; they should be VCs.
And if you're a founder you have those same odds, no? With more skin in the game, being a founder in those cases is probably even worse, too.
I think all I'm suggesting is in the risk-reward decision, it's more complex and subtle than just go be a founder if you're going to do the startup thing as that's the _only_ way it's worth it.
"Apparently your friends are incredibly good at choosing startups; they should be VCs."
Some of them are; however, some are relatively happy going from startup to startup (fairly early) getting things done. I'm sure some of those will hit well and others won't.
edit:
It's companies that are picked by YC
You can get single digit millions rich (which is "rich" to most of America, though obviously not SV or NYC rich) by being frugal, saving and investing
Most people don't have the discipline though.
When you live frugally, you're constrained. There's a max to how much you can save. Furthermore, while you're saving, life passes you by. Opportunity costs.
Who wants to go on a dream vacation when they're in their 60's just to have their hips hurt and their spouse in similar shape? How can we have the dream vacation now and have a pile of savings?
It's better to leverage the upside; figure out how do I significantly increase your income right now. Not increase your income on a probably acquisition 2,3,4 years from now, but increase your income right now.
BTW, I'm very good at increasing my income. I usually bring home an extra $2K to $3K a month on top of my day job, and am always looking at ways to grow this.
Where are they trying to go? We all die. And we can't take it with us. At our deaths, any balance left that is greater than zero is an experience that we robbed ourselves of.
Acquisitions are rare events (given that 92% of the startups fold). And acquisition where employees actually make out enough to recoup their lost wages, even rarer.
Employee beware.
Couldn't agree more. I've done startups and learnt a lot, they got me to where I am today. Now I've found a corporate place that doesn't take away from my personal life. Couldn't be happier.
Tom Preston-Werner is a great developer, probably world class. And he was offered a whopping 300K bonus by a company that earns $220K+ profit per employee annually (with a disproportionate amount of value created by the software engineers).
Lots of opportunity cost, gone. How do we offload this risk to the investors? Demand what you're worth. Take money off the table upfront.
Lesson to the Hacker News readers; you're not going to get rich by being an employee. Start your own company if you want any sort of chance of becoming rich. Otherwise forget the extra hours, live a balanced life, play with your kids, love your /(boy|girl)friend/ or spouse.