Given the odds, is taking venture capital the best way to get rich?

Another way to decide questions like this is to poll rich people and see what percentage took investment to do it. I don't know what the numbers would look like in other fields, but nearly all the people I know who got rich from software took money from investors. In fact Steven Wolfram may be the only one I know who didn't.<p>The danger of this method is that you're measuring how things were in the past. Maybe things are different now than they were 10 years ago. But considering how many people in how many different industries (from restaurants to hedge funds) use investors' money, my default assumption would be that it's a reasonable idea.

The Millionaire Next Door was somewhat interesting. However the follow-on book, "The Millionaire Mind" was packed with statistics instead of anecdotes and for me at least, had a number of ideas and changes to my perspective to offer.

The author is talking about a decision that I don't think is made very often. Founders don't sit around thinking, "Gosh, should I do a VC backed business or a lifestyle business? Which has a bigger chance at wealth?" They generally chase the idea that they chase-- because they are passionate about it or because it falls into their lap. Based on that idea they say, "I could pull this off without someone else's money" or "I need to go find some money somewhere if I'm going to pull this off."

VC investment is great for founders, you can pay yourself a real wage (no more ramen), you can hire, and really make the company a success. Giving up 30% of the pie to have $5M in the bank is pretty good methinks. Sure, you may get kicked out, and / or the company may fail, but with some cash in the bank you are THE MAN for a couple of years.

Its not the question of whether or not to take VC, its a question of when. Timing is everything. For a lot of businesses, there is that brief moment where the extra money can help get you in the mainstream

The best way to get rich is selling insurances. There is good money to be made with what is basically shovelling papers and.. ... doing well in marketing / sales. And that's the kicker. Because the good sales people have much better jobs, which are interresting to the sales geek. But if you are the only smart guy in your region, you can pull it off quite easily. Off course it is boring work, that's the downside. And the real reason for taking up venture capital: to get your world changing idea funded (realized).