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?

#261

Post by CalChris » Sat, Sep 23, 2017, 4:40 AM UTC

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.

Buffett, yes. But I remember talking to a group secretary who'd been an executive secretary in the Dot Com heyday. She flew to Paris on the Concorde for bi-weekly meetings.

Cuz it was important.

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

#262

Post by ohyes » Sat, Sep 23, 2017, 4:42 AM UTC

A bird in the hand is worth two in the bush. With a few million you can never work again.

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

#263

Post by bilbobagends » Sat, Sep 23, 2017, 4:56 AM UTC

sokoloff wrote: post #210

bilbobagends wrote: post #208

Earlier quoted context omitted.

First, a sale of $14M doesn't get you $14 - you'd get less than 10 - best case. Second, your after inflation return in the current environment may be quite ugly - $300K or $400K a year will not feel rich in any east or west coast city.

Disagree. $300K/yr with $10MM in the bank will absolutely feel rich. The reason people with $300K household incomes in Boston/NYC/Silicon Valley don't feel rich is because out of that $300K, they're buying housing and saving for retirement/college/rainy day. Take that away, and $300K spendable is a fairly luxurious lifestyle.

I suppose it depends on what feels rich. The kinds of places you go when you are actually rich cost thousands or tens of thousands of dollars a day, and they have shops where most of the stuff costs tens or hundreds of thousands, and everyone around you is carrying, flying, driving, or sailing things that cost hundreds of thousands or millions.No one I know who makes 300K (after tax) - unless they have a net worth that is in the 10s of millions - feels rich.

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

#264

Post by awakeasleep » Sat, Sep 23, 2017, 5:09 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).

Many people don't strive to be trashy all the time, and that reddit style encouragement to always push the trashy envelope isn't always cute!

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

#265

Post by sorinn » Sat, Sep 23, 2017, 5:10 AM UTC

Have you tried https://21.co/vcs/ ? Might be worth a few thousand bucks?

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

#266

Post by CalChris » Sat, Sep 23, 2017, 5:22 AM UTC

qaq wrote: post #60

godot wrote: post #8

Earlier 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% ?

Forgot to file that 83b election?

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

#267

Post by reilly3000 » Sat, Sep 23, 2017, 5:22 AM UTC

zupreme wrote: post #47

Learn from my mistake. Unless you're already financially secure (meaning you could stop working and live your current lifestyle for several years) then my advice is to take the money while you can OR to leverage that valuation to pocket a few million $ (by selling equity). I'm doing great with my current startups now but several years ago I founded a very promising startup which almost immediately got many acquisitio…

I'll ditto the take the money message. Great pain and suffering awaits those who don't whose company then becomes less valuable. But, life is pain. Take the money because the next idea, the one you really wanted to do, that can happen. Once you've sold a company fundraising is 10X easier.

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

#268

Post by acty1 » Sat, Sep 23, 2017, 5:22 AM UTC

What are you after in life?

A lifetime of financial security and building great businesses?

Or working for someone else / struggling to make ends meet because you thought you could turn 12M into 50M or 200M. But in fact it flopped.

If you have more than enough to be financially secure already (and perhaps your children if you choose that path).... then go for the home run.

But if this thing comes crashing down (99% of businesses fail within 5 years and 99% of the remaining 1% fail in the next 5)... then what would you think?

Sure would be nice to put a million or two in the pocket today.

I'm going to get flak for this.... but there's probably a better chance that BTC/ETH will return 10x returns over the next 10 years than turning a business valued at 12M into 120M.

Yes, that is speculation. But so is your ability to scale 10x (but at least somewhat within your control).

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

#269

Post by immad » Sat, Sep 23, 2017, 5:23 AM UTC

lpolovets wrote: post #138

I'm a seed stage VC. If you want feedback on your pitch or cold email, please email me at leo@susaventures.com. I'd be happy to help. My fund might be a fit as an investor. If not, then I might be able to suggest a few firms that could be a fit. Also, 4% is a low open rate, but that might be misleading. For example, I set gmail to not open images by default, which could affect emails that use tracking pixels. Finally…

I also extend the same offer as Leo. Email in my profile.

If you can get a $14m acq offer you can almost certainly get funding if the market is big.

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

#270

Post by fenomas » Sat, Sep 23, 2017, 5:25 AM UTC

sgs1370 wrote: post #220

sgs1370 wrote: post #205

Earlier quoted context omitted.

You should* also be working with a banker who sells companies for a living. They will take some % (10%? Who knows) of the deal, but in my limited experience it seems worth it, since they will also help you make introductions and give advice - maybe not perfect advice but it will be advice that will either raise the price of your sale, make it happen faster, or promote some corrupt agenda the banker has (i.e. work wit…

I could be wrong also, my remembered banker stories were about larger transactions, it's true. (PS, why can't I reply to the comment to my comment? I guess I don't comment enough to understand HN :-)

> why can't I reply to the comment to my comment?

There's sometimes a timeout, to discourage rapid back-and-forth arguing.