David Cummings on Startups

Successful Tech Entrepreneurs are as Rare as Pro Athletes

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David Cummings

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A little over a year ago I was talking with a super successful tech entrepreneur and I asked about his thoughts on angel investing. He immediately replied that 19 out of his 20 angel investments had lost him money and that the one that made money didn’t make him whole across all his investments. Next, he offered up something that’s always stuck with me: successful tech entrepreneurs are as rare as pro athletes.

Think about it for a second: how many pro athletes, ones that actually made/make a great living doing their sport, do you know? For me, the answer is zero. How many kids from the high school baseball/basketball/football team go on to become pros that make a good living? Nearly zero. Now, in that same context, how many tech entrepreneurs make it big (e.g. make $10 million personally within seven years)? Nearly zero.

Perhaps the next analogy here is that the well-known tech accelerator Y Combinator is the IMG Sports Academy of the startup world. Regardless, the next time you think of successful tech entrepreneurs, consider them as rare as pro athletes — it’ll change your perspective.

What else? What are some other thoughts on the idea that successful tech entrepreneurs are as rare as pro athletes?

Comments

5 responses to “Successful Tech Entrepreneurs are as Rare as Pro Athletes”

  1. Alex from LegalTrek Avatar
    Alex from LegalTrek

    I was thinking about this since I woke up in the morning and saw your post.
    Is it really that we are like athletes. Yes, for sure, in many ways. We need to run sprints, we need to do marathon, we need to be good at many sports not just one.

    But then, is athlete really a good connection. Only in sense how many succeed.
    You know which one is even better one. Being a coach.
    Why?
    Well, how many players there are in team, 5, 10, 20?
    How many coaches? 1, 2, 3…
    So percentage of the players succeeding is far more then being successful coaches.
    And yet, players are more recognized, they can work individually to be better, it does need a team to win the game but you can get better with working harder then others.
    For the coaches, he needs to CREATE the team, he needs to see the direction, he needs to improve individuals. That’s why it’s hard, that’s why I would like to consider our way as a coach way.
    Chance of success still stands in this comparison, if not even more, but it does give this another important dimensions. It involves all what we strive for!

    Reply
  2. Ron Hollis Avatar
    Ron Hollis

    Interesting topic….I agree that being a successful coach is more analogous than just being the pro athlete. As an entrepreneur, I invested heavily in developing my skills so that I could effectively coach my team, my company. As for the magnitude, the percentages actually might be similar to the number of coaches that are successful (win a championship in their respective leagues) to the number of teams playing. Out of 1000’s of folks that start businesses, we know only a few (less than 5%) actually make it.

    Reply
  3. Irv Avatar
    Irv

    Great Post David! When I left my consulting job to start my company, I met with a Partner who told me about his ambition to be a Concert Pianist. As it turned out, he graduated from Julliard with great talent and potential. Then the reality of competition and the pure gravity which holds any person back on their way to success. He gave up on his dream His parting comment to me was “…for every one concert pianist, there are thousands of piano players working in bars for tips”. Entrepreneurial success is about defying gravity and realizing that a lot more than a good idea or a good team can ensure success.

    Reply
  4. Charlie Paparelli Avatar
    Charlie Paparelli

    Amen. Charliep

    Reply
  5. Dave Williams Avatar
    Dave Williams

    I like to best equate it to winning the business lottery. Some win it huge, some big and some lose it all, and not just financially, but the important thing to know is that if you aren’t in the game you can’t win. So, if you decide to play the game, find yourself a great partner, with experience and make decisions that move the odds in your favor, while being careful to not sink the ship through bad decisions, preparation, and always keeping an eye out for icebergs while growing customers, staff, technology, pivoting, and having a strong POV for where you are headed! Don’t be a fraud to fire fast customers and clients that aren’t a fit and push yourself harder than you have ever done in your life. I have always found my best investment has been in myself, foregoing other opportunities unless I see the same entrepreneur fire, experience, insights, and ability to execute from start t finish. In my experience it is all about the jockey and knowing them well. The netter they are, the more you make, and the fewer headaches throughout! Invest more in less, but in those with experience and I have found to have consistent and hugely successful outcomes.,something to think about.

    Reply

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