Renting for free, for equity in startup?

Question

I'm living in a place in which iGaming, Blockchain, and startups are becoming a huge sector. I so happen to have an apartment I brought here a years ago before the market boom in a very prime location. The place it self already paid it self off and I have no mortgage on in.

I also don't pay property taxes on this unit. My expense are just internet, water, propane.

Anyway, my question is this. Has anyone ever went the route of renting out their apartment/house (enough just to pay the utility bills, so I'm talking about 300 euros a month)  to a tech startup for equity in their business?

I figure I have nothing to really lose even if they don't take off.

Looking for some insight on going about this.

Thanks

Edward Liu · Answer

If you have no subject matter expertise in areas of iGaming, Blockchain, etc., then NO.  A big NO.

1) Hard to pick winners

- Convention wisdom says over 90% of tech start ups fail.  Even for experts, pick a winner is extremely hard. How do you know which business is the right one?

2) Real Winners can afford rent

- For entrepreneurs who had successful start ups, then they have no problems getting funding.  They would never trade equity for rent.

- Those who give up equity for rent is likely having problems getting funding or business is failing.

3) When do you kick out a loser

- How do you know it is time to kick out a loser who is occupying the property?  If you don't know how to evaluate a business that lives in your rental, then you will be stuck.