MY (BACK) STORY · Ran a startup for 18 years · Took Private Equity $ after bootstrapping for a decade · Started a private family office investing in VC firms · Helped a company raise pre-seed round in '22

Startups vs. VC vs. Private Equity Each business plays a different sport, with different rules. Your satisfaction is largely going to be derived by how well you play that sport. College students often have no idea on what "sport" they are good in, hence this talk. /1

Startups = Wrestling Startups are like greco-roman wrestling: high degree of freedom, low degree of coordination. You're on a team, sure, but startups throw people at problems & hope they don't get pinned. Startups are for people who THRIVE on the struggle. /2

Startups = Delayed Gratification To make real $$$ at a startup, paradoxically, the entire team needs to be successful. You will make money if the enterprise succeeds, largely through stock options. This may take 2-10 years, or longer. /3 (Startups envision success like so:)

VC firms = basketball teams Venture capital is a team sport, largely for the partners. They are the stars of a firm: they make deals, they speak, they recruit, they tweet. Like basketball, VC stars have to coordinate & play both ends of the court. /4

VC Rewards Go to Stars Getting hired to a VC firm, you can learn as a bench player. You're not going to get minutes unless the star is off the court - which happens rarely. VCs reward folks who push their way into the game, by working long hours or staying years. /5

PE/IB are football teams Private Equity/Investment Banking looks for skill players. Like a football team, if you get hurt, they sub in someone new. The system is greater than the players. If you're technically excellent & want to work for a big brand, PE/IB is a fine choice. /6

PE/IB success = making a massive play As a role player, there's a lot of coordination, you will need to stand out by making a big deal. The rewards are far more annualized, so success is short term, but being in the right place, at the right time can be very lucrative. /7

TL;DR Find a Career Game You Like Don’t make the mistake of playing the wrong game. Like sports, you may find career path is not for you - that doesn't mean anything other than you'd prefer to play another game. If you start in one sport, you can always try another. /end

@paul_griffiths i remember when you used this on me 🥲

@JessTheVC You got the artisanal advice dear

@paul_griffiths What kind of stuff are you investing in these days?

@JosephDiRosa Peep the site

@paul_griffiths Great break down. May I suggest swapping out basketball for hockey to keep the contact sport vibes going? lol

@homerfolmer You may, if you can explain how the stars vs. bench dynamics works on hockey?

@paul_griffiths @readwise save thread

@paul_griffiths Recent college grad here: I really love this analogy so great work! As a former athlete and sports fanatic, this makes a lot of sense A startup could also be a baseball player Baseball players typically have to play 6-10 years before the big pay day including minors

@paul_griffiths Tl;dr startups are wrestling, VC is basketball, and PE/IB is football

@paul_griffiths @UnrollHelper

@paul_griffiths These are really great analogies and absolute the right conclusion (former banker-turned M&A lawyer who works with all these players)