Obviously, startups are usually a business too. The difference is what they actually do to make money - by creating value or by putting in money.
> Not true. General partners also invest in the VC firms. It's not completely OPM
When you have enough money to invest in a VC fund, typically have enough to get by without the returns (at least if you're a smart investor). On the other hand, most entrepreneurs put it all on the line when they try to bootstrap a startup (remember most startups don't successfully raise).
> Also not true. In NYC, for example, 100K isn't exactly "cushy".
Most people would very comfortable with 100K, NYC or not... just the fact you have a decent, dependable salary for several years makes it cushy compared to a startup.
> Back to the previous point, they lose the money they personally invested and they feel the failure when they turn around and try again.
Entreprenuers put much more in a startup than money. In fact, I would say money is the smallest investment you can make in a startup, emotionally. Time, blood and tears build startups, money is just a facilitator.
