Startups

The year is 2025. I’m turning 40 soon, sitting in a cramped 450-square-foot apartment with thin walls, $50,000 in credit card debt, and a credit score of 646. My financial worth: $100 in liquid assets. My net worth: deeply negative. Five years ago, I was worth over $7 million. This isn’t a story about market crashes or economic downturns. This is a story about human fallibility—specifically, mine. If you’re looking for a cautionary tale about greed, overconfidence, and the psychological pitfalls of sudden wealth, welcome. I’ve lived it all so you don’t have to.

The distinction between growth and grind mindsets deserves serious examination. Growth encompasses a deliberate process of learning, skill acquisition, and personal evolution—typically following an upward trajectory. Grind, by contrast, represents pure exertion, often pushing toward exhaustion and burnout. One approach cultivates sustainable advancement; the other frequently leads to diminishing returns.

I’ve noticed a trend amongst startups (particularly those in the financial-ish space) which amounts to some variation of “hey guys, maybe we can get customers if we use memes?”. This is not dissimilar to the “viral” craze of the early 2010s in startup land, where a number of companies raised mountains of VC cash entirely on some silly app gaining millions of users overnight. One of my favourite examples is the Yo app.

Software engineers are likely familiar with the CAP theorem, coined by Eric Brewer. In essence, the CAP theorem states that distributed databases can have at most 2 of 3 attributes: consistency, availability, or partition tolerance (fault tolerance). In other words, you can have a database that is consistent and highly available, but not fault tolerant. Or, you can have one that’s fault tolerant and highly available, but isn’t always consistent (especially during network failures).

I saw a discussion on Reddit about entrepreneurship recently that got me thinking. What’s the point of being an entrepreneur when the odds of success are incredibly low? This is especially true if you’re low on resources or clout. Beyond the Silicon Valley Narrative # The dominant narrative about entrepreneurship has become increasingly narrow: raise venture capital, grow at all costs, aim for a massive exit, and hopefully become a billionaire. It’s the script that’s celebrated in tech publications, glorified by accelerators, and drilled into the minds of computer science graduates.

One of the hard truths in startups, especially VC funded startups, is that perception matters more than reality. Many people are able to raise vast amounts of money at high valuations on little more than excitement about the prospect of a viable business some time in the future.

I really wanted to be a founder of a successful startup (where successful to me means the company can pay its own bills, and pay employees well). However the reality hasn’t matched my ambition and I’ve decided to find a job like a regular chump. I assumed that with work ethic, skills, persistence, and plenty of trial and error I could eventually find success. That hasn’t happened, and I’m nowhere close to making that happen. Being good at computers and working hard doesn’t cut it.

Starting any company is hard. Startups are even harder. If you want to start a company but don’t have a business idea, then the first step is figuring out what to build. Is this…a startup idea?

Dopamine is a chemical in our brains associated with good feelings and reward. Jonathan Haidt discusses this connection in his book “The Righteous Mind: Why Good People Are Divided by Politics and Religion”, drawing on pages 102-103: All animal brains are designed to create flashes of pleasure when the animal does something important for its survival, and small pulses of the neurotransmitter dopamine in the ventral striatum (and a few other places) are where these good feelings are manufactured. Heroin and cocaine are addictive because they artificially trigger this dopamine response. Rats who can press a button to deliver electrical stimulation to their reward centers will continue pressing until they collapse from starvation.

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.