Climbing the wrong hill (2009)
cdixon.org
cdixon.org
That way the financial system in the form of VCs can extract maximum benefit for minimum expenditure.
The answer, of course, is money.
But Dixon prefers to camp out on algorithms and behavioural science rather than providing the simple answer, and if you read between the lines (and you're familiar with the startup scene, VC, and suppressed developer wages by collusion + H-1B visas + "talent shortage") it's not hard to figure out why.
If you stay in finance for some time, you have probably made a lot of money by the time you get out. The plan is to work yourself to death as an investment banker and hope you made enough to retire (or become a VC, like him) at 35.
Work years for a startup, and you might not have made anything beyond living expenses. The upside is that the working culture will probably suck less and winning the startup lottery will make even more money. Also, scamming people and being a sociopath is optional (but see Uber).
It's also a case where I think starting young has significant advantages. Life gets pretty good once you have bootstrapped revenues and a business somewhat on autopilot. Especially for the young, as they're relatively free and can enjoy location and time freedom more fully.
It's great to ask what questions, but they should almost always be followed by why questions. Why do you want to work at or found a tech startup?
Startups have been glamorized by the media for well over a decade, and the hype today is at a fever pitch, so it's really no surprise that startups are so appealing. That doesn't mean that most people have a realistic understanding of what it's like working at or starting one.
Frankly, "I want to do a tech startup" is as much a red flag as "I want to make a lot of money." It's so non-specific as to be effectively meaningless. A startup is just a vehicle, and if you don't have an interest in driving somewhere specific, you're driving for the sake of driving.
> There is a natural human tendency to make the next step an upward one.
There's also a natural human tendency to believe that the grass is always greener somewhere else.
The prototypical Silicon Valley startup can be as demanding as an investment bank, and a good number are chaotic and dysfunctional to boot. And you don't have folks like Sam Altman talking about "founder depression" because running a startup is the next best thing to heaven.
I actually liked the analogy but applying algorithm analogies to one's life of course only goes so far. First, even if one decides to look at life as an optimisation problem, it is much more difficult than the hardest multiple objective optimisation problems. One of the reasons is that I'd equate the optimisation landscape not with static hills, but more similar to waves or sand dunes that keep shifting with time in a way that can at most give you short term predictions. We don't have the life span or processing power to use a computer algorithm to optimise a static "life" landscape, let alone a dynamic one.