Playing VC…with Human Capital

This seems to be one of those periods in Silicon Valley with a lot of startup activity. Leaps ahead in technology have converged with a round of new insights into consumer utility, yielding visions for potential products, companies, and wealth generation—all seeking infusions of talent and funding.

These PowerPoint dreams are the stuff of venture capitalists: business models, market size, revenue growth, needs not met, problems not yet framed. All are attractively packaged and temptingly displayed, aiming to entice VCs to open their wallets. What an interesting job these VCs have, scanning a constant parade of creative new business ideas in search of the next YouTube or Facebook. Too bad for the rest of us, who have to wait for these companies to become household names before we hear about them. As to those that don’t, they never show up on our radar. And without access to VCs’ millions there’s no way we can get in on the ground floor of opportunity.

But wait, there’s another option. You can play VC with human capital, that is, your ability to add value in the workplace. Through either consulting or employment status you can participate directly in businesses you reckon to hold bright prospects. At times like these when so many young companies are looking for help, it’s not that hard. And hey, we’ve all heard the story of the Google masseuse who became a millionaire.

To be sure, just like venture capital, the human capital strategy is full of risk. You may be working for equity only, or for deferred compensation pending certain levels of funding. There’s a very real possibility you won’t take away anything except some interesting anecdotes and a new line on your resume. But if you’re the dice-rolling type, we all know that somewhere out there, currently almost indiscernible from tomorrow’s flameouts, is the nugget of the next billion dollar idea. Can you spot the wheat amidst the chaff?

It’s a lot easier to market your human capital if you’re in Silicon Valley, where demand is high. Opportunities tend to show up on popular job sites here such as Craigslist or LinkedIn. Of course tech talent is always in demand, but startups also need help with marketing, sales, biz dev, HR—most of the usual corporate functions. If you have an appetite for risk give it a try. At worst you’ll gain significant new business experience, and at best—well, we all know one of those promising startups will hit the jackpot.