Heavily discount offers until you have real termsheets.
Ask HN: Sell my startup for $14M because I can't raise $2M?
61–70 of 336 posts
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#62If you don't mind sharing your company name or some anonymized form of contact info if you prefer, there are people here who can help, assuming your biz/opportunity is legit.
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#63Side question. It seems the conventional advice here is to take the money. What if it was far less, say half that? How much is too little?
So by Mr Money Mustache method, you look at the 4% rule. 1mm = 40k per year forever 2mm = 80k per year forever 3mm = 120k per year forever 4mm = 160k per year forever Pretty set with anything past 2mm in most of the US, maybe you would want 3 or 4 if you really like SF.
160K in SF right that will take you far
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#64Take the money.
It will be 100x easier to raise capital next time.
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#65A 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 want more of this tangent.
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#66IMO You need to look into both options until you get at least (a) a letter of intent for acquisition or (b) a term sheet from a VC. If you can, get both, then consider taking the VC money if you can get a significantly higher valuation and good terms. I recall a VC interview recently where he said (paraphrasing) not accepting cold emails and requiring an introduction is a filter that proves you know how to hustle and…
Re the "know how to hustle" thing - building a successful business takes a lot of "hustle". If someone succeeds at that, they've proven that they can do it.
The notion that someone needs to meet some invisible bar of proof beyond building a successful company is - to me - yet another symptom of the damage SV has inflicted on the minds of a generation of technically inclined enterpreneurs.
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#67If you're looking to sell - feel free to get in touch. I work in tech M&A and can help guide you through the process if you're interested (value of the company, prepping biz for sale, negotiating, educating decision not to sell, etc). Contact details are in my profile if you're interested.
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#68A 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…
It's a team of people, so the $14MM wouldn't all go to a single person. It's certainly a lot of money, but it may not be retire in comfort money.
Depends on your definition of comfort. I sure would be comfortable for life with such an amount of money, even if I would be left with "only" 2M.
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#69AngelList was built to solve this problem. If your revenue and traction are true, you'll be oversubscribed. Create a profile, and message investors. Also -- even if you intend to sell, consider raising a round first. Having an bonafide valuation will let you jack up the sale price 5x, or more.
This isn't even remotely true. Years ago I signed up for AL, and the situation was exactly as the OP described in "real life": you had to be connected to get connected. Revenue does not matter. Or rather, did. I don't know if it's any better now, but I doubt it.
Same here. If you don't already have a well-connected lead investor or a well-connected board member/advisor then AL will be a ghost town for you.
Re: Ask HN: Sell my startup for $14M because I can't raise $2M?
#70Earlier quoted context omitted.
I might even argue even if you're old, sell now still. I assume "a ridiculously small team" means 3-4 people. Even assuming an equal split (it sounds like OP is CEO/main founder, so should be even more), that's $3mil a person at least. After tax that's still $1.5mil. It allows OP to live a much improved life, while at the same time optionally pursuing more business ventures if they wanted, or simply spend more time w…
Why would the tax be 50% ?
OP did not specify their country; some countries tax that high.