Skin in the Game

I don’t like making predictions, but one prediction I do have is that many future big companies will be what I call “skin in the game startups” (you heard it here first). Having skin in the game simply refers to sharing risk and rewards with a counterparty. In startupland, angel investors have skin in the game: they give money to founders to help them start a business in exchange for equity with the hope that the business will become more valuable in the future. The investor is sharing the risk of the company (by outlaying their money), and if the company does well the investor will eventually reap grand returns.