a16z has just solved a big thing that has frustrated me for a long time. A VERY common principle of many VCs is that they won’t even consider funding an entrepreneur who hasn’t got the ‘commitment’ to have quit their job and gone full-time on their idea. But do you know what that implies?
a) You are fortunate enough to have squirreled away enough money to survive for 6-12 months on zero income. [See chart below]
b) Your friends and family network is affluent enough to give you the most risky of capital to support you through building the product and getting that initial traction.
If you are in your twenties and living in a major city, then your ability to do this is pretty unlikely – Check these stats from www.collegeinvestor.com:
Bravo a16z – BRAVO!