Managing $300k Burn Rate

Shaan shares how he manages a significant annual investment in his team and projects.

"I have a significant burn - about $200,000 to $300,000 a year of people costs to do these things. My goal is for them to break even, but if not, that's what money is for. Money is to be invested in things that will grow, so I look at it like an investment.

It's worked out so far where the side hustles more than pay for the money I put in. For the angel investing part, I don't pay salaries - it's only carry, so it's splitting the upside. I took some of my 20% carry and let them have more carry. For them it's fine because they make money doing other things, so they think 'cool, this will pay off in 5 years' and they get to learn about investing and build a portfolio. If they want to go get a job doing this or start their own fund, they'll have a track record to point at and say 'I've been doing this for years.'"