Ask HN: Sell my startup for $14M because I can't raise $2M? • Hacker News Board

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#231

Post by [deleted] » Sat, Sep 23, 2017, 1:32 AM UTC

charlesdm wrote: post #219

nugget wrote: post #144

Earlier quoted context omitted.

Let's pretend someone has arrived upon 14 million in after tax net worth (not the case in OP's scenario). You want to be set "forever" and not dependent on working again. You'll probably work, but may not be able to replicate the same financial success you experienced previously, so it's hard to count on future income. There's a debate around what's called the "Safe Withdrawal Rate" which is financial-market speak fo…

> You'll probably work, but may not be able to replicate the same financial success you experienced previously, so it's hard to count on future income. If that is the case, then you should focus on learning how to invest properly and on achieving, say, 10% annual returns yourself (i.e. without having to pay bank fees for subpar investment advice, which is what you usually get). Just because you made bank doesn't mean…

[deleted]

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#232

Post by Retric » Sat, Sep 23, 2017, 1:54 AM UTC

zdragnar wrote: post #173

hexadecimated wrote: post #101

Earlier quoted context omitted.

Such hideously wasteful extravagance, and how sad that these people who are already absurdly rich are still greedy for more.

Buying a jet creates high paying, skilled jobs which support families, their children's education, and so forth. The downstream effect from the purchase includes the pilot, the airport expenses, maintenance crew, and the taxes on the expenses and all of those salaries. Not a cent of the money is in any way wasted. I'm reminded of the Maryland luxury tax, which allegedly crippled their boat building industry and put a…

May I suggest you read this: https://en.m.wikipedia.org/wiki/Parable_of_the_broken_window

Fuel and depreciation is simply wealth being destroyed.

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#233

Post by inthewoods » Sat, Sep 23, 2017, 1:57 AM UTC

Generally I’m in the “sell” camp - but one question I haven’t seen in the answers: do you love this business? Are you passionate about it? If you are, then you may not want to sell.

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#234

Post by billphipps » Sat, Sep 23, 2017, 1:59 AM UTC

i don't know what i'm talking about but i'd take the money and run, it sounds like enough to get by on

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#235

Post by Eric_WVGG » Sat, Sep 23, 2017, 2:02 AM UTC

jonnathanson wrote: post #40

austenallred wrote: post #11

A few things, though it's hard without much info (re: revenue/growth). Regardless: 1. A $14m sale is a huuuge win. You'd be set for life. A 100% likelihood of $14m is something that is difficult to turn down in almost any scenario. Even if you'd eventually make $50m, your life wouldn't change much from a net worth of $14m to $50m. You could buy a nicer jet? Let's say you take the $14m. Your life would (presumably) ch…

"Even if you'd eventually make $50m, your life wouldn't change much from a net worth of $14m to $50m. You could buy a nicer jet?" I know you're kidding around here, but all kidding aside, whether your net worth is $14M or $50M, you can't afford a jet. (I mean, nominally speaking, you can front the sticker price -- but you'll get eaten alive on fuel and maintenance over the jet's useful lifespan, and the jet as an ass…

I’m reminded that when Jobs returned to Apple, he had a weekly salary of $1 — and a $90 million corporate jet.

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#236

Post by mlevental » Sat, Sep 23, 2017, 2:04 AM UTC

Retric wrote: post #232

zdragnar wrote: post #173

Earlier quoted context omitted.

Buying a jet creates high paying, skilled jobs which support families, their children's education, and so forth. The downstream effect from the purchase includes the pilot, the airport expenses, maintenance crew, and the taxes on the expenses and all of those salaries. Not a cent of the money is in any way wasted. I'm reminded of the Maryland luxury tax, which allegedly crippled their boat building industry and put a…

May I suggest you read this: https://en.m.wikipedia.org/wiki/Parable_of_the_broken_window Fuel and depreciation is simply wealth being destroyed.

umm that is literally the opposite of broken window fallacy

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#237

Post by ronreiter » Sat, Sep 23, 2017, 2:13 AM UTC

Did you optimize your bid? If your technology is already up from the ground and you have a solid team that can execute and hire then you very well might be worth 50-100m as well.

And send me your deck - ron.reiter@gmail.com

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#238

Post by johnsonjo » Sat, Sep 23, 2017, 2:24 AM UTC

Retric wrote: post #232

zdragnar wrote: post #173

Earlier quoted context omitted.

Buying a jet creates high paying, skilled jobs which support families, their children's education, and so forth. The downstream effect from the purchase includes the pilot, the airport expenses, maintenance crew, and the taxes on the expenses and all of those salaries. Not a cent of the money is in any way wasted. I'm reminded of the Maryland luxury tax, which allegedly crippled their boat building industry and put a…

May I suggest you read this: https://en.m.wikipedia.org/wiki/Parable_of_the_broken_window Fuel and depreciation is simply wealth being destroyed.

No, I don't believe fuel and depreciation are being destroyed. I think that is the difference between this situation and the broken window parable. They are simply being traded for a service to arrive at destinations swiftly. If we judge purely off opportunity cost the billionaire's time is worth a lot more than the average layman. The extra cost in the goods and services of a private jet may very well be worth the expense to the billionaire.

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#239

Post by weaksauce » Sat, Sep 23, 2017, 2:25 AM UTC

jedberg wrote: post #212

weaksauce wrote: post #77

Earlier quoted context omitted.

In a somewhat crude and related note. felix dennis (the week weekly magazine founder) once said, “If it flies, floats or fornicates, always rent it.” Not completely bad advice for most rich people that want to stay rich.

It's ok to say "fucks" on HN, especially if it's a direct quote (and in this case fairly relevant since he was a fairly crass man).

I looked up the quote and it seems like it was fornicates though I remember it being fucks. I didn't do a ton of research to verify it though. i remember it as "if it fucks, floats or flies; rent" but I lost the book so I can't look it up easily.

Re: Ask HN: Sell my startup for $14M because I can't raise $2M?

#240

Post by perl4ever » Sat, Sep 23, 2017, 2:28 AM UTC

mlevental wrote: post #236

Retric wrote: post #232

Earlier quoted context omitted.

May I suggest you read this: https://en.m.wikipedia.org/wiki/Parable_of_the_broken_window Fuel and depreciation is simply wealth being destroyed.

umm that is literally the opposite of broken window fallacy

It certainly seems like an example of the broken window fallacy to me. Invoking the creation of jobs to refute the claim of wasting labor is the same illogical argument. It's just redefining bad as good and pretending it is an argument. Jobs are not a scarce resource. Labor is a scarce resource. Capital is a scarce resource. Instead of making cake for the rich, a baker may instead make bread for the poor.