My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
For early-stage investing, personal investment often beats fund management economically
The Reasoning
Fund carry structure and management fees reduce returns compared to direct personal investment, plus you eliminate LP management overhead
What Needs to Be True
- You can afford to invest personally at meaningful check sizes
- You enjoy early-stage more than later-stage deals
- The economics work better after carry and fees
Counterargument
Funds provide leverage, allow bigger checks, and spread risk across more investments
What Would Change This View
If fund size allows access to deals that personal investment cannot reach
Implications for Builders
Consider personal investing if you have capital
Fund management has hidden overhead costs
Focus on what you economically and personally prefer
Example Application
“Angel investor closes fund and switches to personal investing to avoid LP management and improve economics”
Related Knowledge
Capital + Distribution Framework
A business building approach where you leverage existing capital and distribution channels to launch multiple products/services rather than operating them directly.
Transition from advertising revenue to owning the products you promote
Higher revenue per audience member, better margins, and more sustainable business model
Higher Success Probability with Own Business
The probability of making money starting your own business with 50-100K is higher than angel investing the same amount
Young contrarian people create the most interesting opportunities
Seek out and work with young people who think differently rather than traditional high achievers
you're much more likely to be able to take fifty a hundred thousand dollars start a business and get
Starting your own business has higher success probability than angel investing
historically you built a company by building the product and then going and looking for customers no
The internet enables audience-first business building instead of product-first approaches