Ask HN: When does taking risk = stupidity?

5 points by jdileo ↗ HN
How many of you think it's crazy for a non-tech founder who has always won......and recently lost......to take his wife and 3 kids (I'm 36) and move from east coast to silicon valley to network with brilliance and build greatness?

I have never doubted myself before, but I'm no longer in my 20's and single.

Note:I can self-fund up to average size angel round. I have 2 weeks to make a decision.

19 comments

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Questions and free advice:

What does "recently lost" mean? Be sure you aren't doing this based soley on emotion.

What's an average size round to you?

What do you bring to the table as a non-tech?

Is there a business you want to build, or are you looking for pitches?

It's stupid if your wife and family aren't into this. Risk money, not family.

"recenly lost"=$3M down to $300K...dumped too much into keeping previous company alive when economy dumped.I can invest $200-250K of my own before seeking additional funding.

I am a proven operator and team builder.  I believe I would be a great complement to brilliant technologist with great ideas but no funding and, most important, real life business execution.

I'm looking for pitches.  No app's or piggybacks.  Something that, if executed, can be a true disruptive technology.  I am open to hardware as well as software technology.

My wife rocks.....would follow me to the moon. She is the best and totally supportive.

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This is a wife problem, not a technical problem that HN can help you resolve. Does your wife approve? Really approve? Really?
Actually, the answer above is the only answer you really need...
My wife is totally supportive. She has seen me create millions out of nothing before, and wants me to feel passionate about why I get up in the morning.
Each individual success is mutually exclusive. The only thing that you can count on is that each individual experience changes you in certain ways...

That said, what's your urgency in having to make a life altering decision that impacts five people (including yourself)?

Urgency is that I've spent last 6 months licking wounds and doing due diligence on what's next. It's time to make a decision and start swinging for the fences.

I am so eager to get back to putting in a 60 hour week of real productivity I could cry!

How much of your due diligence is making you more resourceful with what you want to do?

I really can't agree enough with the earlier comment about discussing this with your wife. It's just as much her decision about where you guys want to live as it is yours.

Be advised that the only reason my family currently enjoys it's quality of life (think big house and foreign cars) is because I have taken risks. I grew up poor and have defied the odds since I was 18.

I don't understand your comment. Are you saying a family man should no longer stretch, grow and strive for abundance....because it is selfish?

The point I'm attempting to make is that the landscape of success can change really fast and what worked in the past might not work again in the future. I've experienced this and I've seen others go through it. I'm talking about millionaires who tried doing the EXACT same thing and floundered for years before they admitted to losing everything.

I am definitely advocating that you develop yourself further and grow in ways you have not. But do it from a position of power, not because circumstances are such that it becomes an act of urgency, or worse, desperation.

> think big house and foreign cars

LOL what? A big house in Silicon Valley costs at least 2 million dollars, and "foreign cars" is like saying "wet water".

"When does taking risk = stupidity?"

When it becomes selfish.

In order words, the moment your wife and children have to make sacrifices to accomodate your dreams.

You may love the thrill of the endeavor, but they probably don't, even if they say they do. All they really want is you.

If you have enough runway to avoid falling into selfish mode, go for it and keep us posted. If not, think hard about the others whose lives you'll affect.

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My advice would be to team up with others in the VC/angel community. You may be the type that VC's like to put in as the CEO of a heavily technical group. If you don't have the technical savvy yourself, you may be putting your nest egg at serious risk.

In the past month there was a thread about becoming an angel investor. One of the key points was to spread your investment over 10 or so companies. Going that route improves your chances of finding a winner and finding a good fit as a CEO.

SV is a good move. There's a good community of like minded folks.

thank u, this makes a lot of sense.
The answer in my opinion lies with you. I'd try to answer these questions:

What are your priorities ? What is most important to you ? What if you fail, especially considering you have 3 kids and a wife to support - do you have enough savings to support the family if things dont work out ?

There's nothing stupid with what you're wanting to do. As long as you can take a calculated risk, you might just want to go for it.

Rule #1 of risk taking: be prepared to lose what's at risk.

Are you prepared to lose your wife and kids?

This situation is not any more complicated than that. Any thinking beyond this simple yes/no is your emotions getting in the way of your logic.