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

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

#191

Post by briandear »

chx wrote: post #74
jonnathanson wrote: post #40

Earlier quoted context omitted.

"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…

At 14M you are already in the territory where a jet card is definitely something you could afford. If I had that sort of money, I would use a jet card for flights within a continent and go first class commercial for intercontinental (and definitely use VIP terminal or at least meet and greet services). But at 50M you might be looking at fractional jet ownership already. There is a difference and it's a big one.

I’d buy a Pilatus PC-12 and fly it myself. Why be a passenger when you can be the captain!

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

#192

Post by alexasmyths »

Consider selling the company.

There are a million other ideas to work on, and once you've sold a company, you're investable.

Ironically, you can't raise anything now - but you'll be able to raise on your next project.

You'll have a nice little bank account to get whatever going, and that'll make you considerably more confident as well.

There's not reason to be sentimental about your project. 99% chance 'it's just a project'.

Think of yourself as a 'Movie Producer' or 'Director' or whatever. You made Jaws. Next you can make Alien. And then whatever.

Unless your project is deeply close to your heart, or you are doing something you really and truly find personal and existential meaning in - and you have a high degree of certainty of competitive advantage for whatever reason (high barrier to entry, massive growth etc.) then consider selling.

FYI that you're having trouble raising is at least some kind of 'flag' that you might not have a strong competitive position, but don't read hugely into 'not being able to raise' - most companies (and many good ones) can't.

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

#193

Post by sheppyc »

lphnull wrote: post #124
kevan wrote: 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.

https://en.wingly.io/

Not allowed in US though.

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

#195

Post by austenallred »

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…

Nah, you can get a small four or five seater jet (eclipse) for pretty cheap these days - https://www.controller.com/listings/aircraft/for-sale/178755.... Maintenance is expensive, but it's doable. Not saying it's a wise purchase, and not a 747, but my very conservative father-in-law is in that realm and loves flying his jet around (he lives in the middle of nowhere and owns a lot of farms, so it's almost a necessity). All in you're probably looking at $1,000/hr to fly it. But then no TSA...

That said, point taken, most people wouldn't buy a jet if their net worth was $15m. I might.

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

#196

Post by austenallred »

nols wrote: post #31
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…

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.

I'm assuming based on the way OP posted he or she owns 100%. If it's split two ways, I'd still take it. 5 or 6 ways? Then that changes the conversation.

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

#197

Post by MrFantastic »

jonnathanson wrote: post #140
AdrianB1 wrote: post #133

Earlier quoted context omitted.

A commercial pilot at a regional airline makes less than $50,000 a year, many are closer to $30,000. When you get hired by a big airliner (over 1500 hours of flight time) and eventually you get to captain (not co-pilot) then you increase substantially, but nowhere close to $20,000, unless you fly a drug lord in strange places.

My gut tells me that calculus goes by the wayside when you're flying Bill Gates around the world, or even just flying your 'garden variety' billionaire and his/her family around the country. I could be totally wrong here, because I'm neither a jet owner nor a pilot. But I've worked around enough uberrich people in my day to know that their domestic staff gets paid really well, and I have to believe a private pilot cr…

You are essentially paying your people to become your confidant and to protect your image.

That's worth a lot to a billionaire.

A pilot has your life in their hands. Smaller jets can be very 'shifty' when landing which is scary. Also you want a pilot that can land anywhere.

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

#198

Post by sjg007 »

lnanek2 wrote: post #185
erex78 wrote: post #94

Earlier quoted context omitted.

There is a lot of advice on the thread saying: take the money. Given your personal situation etc. this may very well be the right choice. But you need to realize that just because you've been approached for acquisition and even if somebody tells you straight up "we want to acquire you", it sounds like you are far away from actually getting acquired. The road from casual interest to money in the bank is long and bumpy…

Definitely. I've been at startups who got signed letters stating the acquisition will go through from the other company, the other company spends months in due diligence learning every secret we had, then they just stop working on it and leave the deal dead.

Do you add a break up clause to prevent this?

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

#199

Post by eschutte2 »

T2_t2 wrote: post #132
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.

Not really. Buffett bought a jet, after calling it indefensible for years, and actually named it The Indefensible. I reckon it is a good investment for many CEOs. There time is worth FAR MORE to their companies than whatever a jet costs to run, the saved time is invaluable as is the clarity that comes with better conditions when flying.

A major advantage to buying a jet is depreciation.

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

#200

Post by osrec »

sjg007 wrote: post #198
lnanek2 wrote: post #185

Earlier quoted context omitted.

Definitely. I've been at startups who got signed letters stating the acquisition will go through from the other company, the other company spends months in due diligence learning every secret we had, then they just stop working on it and leave the deal dead.

Do you add a break up clause to prevent this?

You absolutely should.
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