Super Angel Ron Conway To Would-Be Startups: Don't Quit Your Day Jobs

Yesterday, SAI chairman Kevin Ryan told startups not to worry about the collapsing economy. At least not serious startups with a real plan. They're still going to get Series A funding from VCs, he said.

OK. But what if you're not ready for Series A money yet, and were hoping for some angel investors, writing checks from their own personal accounts, to help you get off the ground while you figured things out?

Different story, says Ron Conway, who is perhaps the most famous angel investor in tech these days. Ron is best known for making very early and very lucrative bets on Google and PayPal, but he's also known as one of the most adventurous angels of Bubble 2.0, and has invested in 130 companies since 2005. We asked him for his advice to would-be-startups last night, and he wasn't nearly as encouraging:

“I would tell (entrepreneurs) to keep their day job until they got one year of funding, and if they couldn’t get that, then they’re not meant to start that company right now…. My advice to (start ups that don’t have a year’s worth of money in the bank) would be to raise money by reducing your own spending. If you can’t raise more money, you have to cut costs. And that’s what I’m harping on to my companies.”

To be sure, Ron is just one angel, and we've talked to other investors who are a little more optimistic about early stage companies; we'll be offering up their thoughts over the next few days as well. But let's be clear about this: When Ron Conway says it's time for startups to buckle down -- or not startup at all -- then you know things have changed dramatically.

UPDATE: If you want to read what else Ron said in his interview with us, click here.

See Also:
Good News, Startups: You're Not Screwed
Fred Wilson on the Startup Depression