In the startup world, you're betting that 90% of companies will go to zero or just return your money, while the remaining 10% will yield huge multiples and markups.

Investors treating startup investments like stock investments led to unrealistic expectations, as they applied public market valuation metrics to early-stage companies, which have much higher failure rates.

The amount to invest in startups varies greatly; while some may invest as little as $5,000, typical investments are often in the tens of thousands of dollars.

Investing in startups is high-risk, and potential investors should be prepared for both significant upside and possible losses.

There's no such thing as value investing in startups; investing based solely on perceived bargains often leads to losses.

When a startup is losing money, it's essentially a wealth transfer from investors to consumers, and only a few companies will successfully navigate this situation by being very smart about their finances.

Joining a startup is statistically improbable to make you rich, so don't expect to be set for life just by joining one.

If a startup fails and goes through dissolution, SAFE investors are next in line to be repaid after creditors, but often receive only a fraction of their investment back, if anything.

Many founders fail to recognize that most startups, including their competitors, are likely to struggle, and that the common outcome is that many will not succeed.