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

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151–160 of 336 posts

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

#151
I'd suggest 2 things:

1) Have you incorporated the buyout offers into your deck? Showing that other companies recognize your company's potential even in its early stages should make a positive difference in communicating value. Consider having another go at fundraising and use resources like AngelList and FB groups related to your space to help with identifying investors and getting intros.

2) Research and Apply to YC - By "research", I mean pre-screen by contacting a few partners to ensure the investor contacts relevant to your company type, stage and size are available; and that investment terms would be and whether they're amenable to you (since your company is more advanced than the typical entrants, the standard 120k-for-7% shouldn't apply).

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

#152
I suggest you simultaneously pursue the buyout and continue trying to raise your funding.

Neither event is 100% likely to succeed, hence do both. If it turns out you get to choose which one happens, that's a nice choice to have.

And please strongly credit other posters' observations about 'bird in hand vs. two in bush'. If the buyout were 100% probable, my advice would be to do that. There isn't a shortage of opportunities and personal financial security will increase the range of those that are feasible for you.

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

#154
post #78

Earlier quoted context omitted.

You don't even need a $500k net worth to afford a Cessna. Most guys I know that have them are firmly middle class. They have to make some compromises on houses and cars, but it's worth it to them because they love to fly.

brb, launching cesna uber startup for rich folk.

Somebody was asking about this on Reddit (/r/flying I think) a few months back. Short answer is that the FAA does not take kindly to receiving payment if you don't have a commercial license, and if you do then there's better work out there than Uber-for-cessnas.

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

#155

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…

+1

I think people don't recognize how "little" money you need to replicate a big salary. 14M at 3% is $420k/yr. And as long as you don't spend every last dollar, that number keeps going up...forever.

Build whatever you want at that point.

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

#156
It's not just a choice about selling out or not. Do you like being at your current venture or can you see yourself doing something else? Do you want to take it to the next level or not?

If you want to walk away and focus your mind on something else then go take the money. If you want to grow this business then start networking and maybe visit your bank (commercial bank loans can often work out cheaper than giving away equity).

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

#157
Sell and build it again.

Once you sell to one company, the other enterprise companies are going to be looking for alternative. Who wants their competitor to control their destiny? Top this off with enterprise tendency to simply kill anything they acquire, and you can probably cycle this 2 or 3 times.

Presumably you'll be able to build the company even faster this time around.

I see RF wireless startups do this over and over.

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

#159
If raising funding would help you help your customers and grow exponentially AND you like what you do, don't even think of giving up. Stay strong. Fundraising is not easy and it takes a lot of dedicated effort to make it happen. I have been through it thrice. Each time is the same - hard.

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

#160
post #107

Earlier quoted context omitted.

It will give you a place to live and food to eat without ever having to do work for money again?

If you have no family sure

Not true at all. If you cannot survive on 160k even with a family even in SF, you may want to look at your spending habits.
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