Investing in other Startups

Note to future self…

Should I invest in other startups?

This is a question that I occasionally think about. Right now the answer is a clear no. However, I feel that this is one of those things that I will repeatedly come back to and the answer might vary across different stages of my life. Here are my quick current thoughts on the topic:

Investing Pros

  1. Ecosystem Support: You support other founders with $$, signal and network
  2. Exposure: Maybe you want exposure to a certain market, team, co-investors.

Investing Cons

  1. Decreases Focus: if you’re thinking about investing this might distract you from your day job!
  2. Negative Signaling: if your employees see you spending time investing as opposed to working hard on your company this might generate some negative sentiment.

Notice that I don’t mention ROI or career prospects in here. That’s because those are personally not a motivation for me. I believe that founders should focus on making their startup their big pay day and their big focus. That’s it for now.

Now back to work…