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Poll: Would you sell your startup for 5x to Google so they can kill it?

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Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#41

Post by _delirium »

simonsarris wrote: post #22

Yes, of course. Ever hear a movie described as "the kind of movie you get to make after winning an Oscar"?[1] There are some movies - special movies - that are the kind of movies directors get to make only after they've made a successful movie. Start-ups seem a lot like that. [1] That was Todd McCarthy, writing for Variety, about the Coen brothers's movie A Serious Man .

Are startups like that? Most of the companies I think of as special in tech were their founders' first startups, not subsequent ones started after a significant cash-out of an earlier one.

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#42

Post by polarix »

ianstormtaylor wrote: post #30
stephencanon wrote: post #15

Earlier quoted context omitted.

That's how I interpreted the question (which basically makes it a no-brainer).

Almost a no-brainer. It depends on how many x you think you can add to that valuation in whatever amount of time you are okay with adding it.

No, because that should adjust your expected value.

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#43

Post by dylangs1030 »

failedthrowaway wrote: post #37
dylangs1030 wrote: post #18

Yes, for several reasons. I'll assume this is my first startup, and I started out at the bottum rung in the tech world, with no prior connections. 1. Most startups (by an incredible supermajority) fail. An acquisition can save you from that, especially if you're one of those startups that generates no revenue but is extremely popular. 2. Not only do most fail, they don't generally fail spectacularly. They die, slowly…

2. Not only do most fail, they don't generally fail spectacularly. They die, slowly and steadily, in a death march that saps the founders of their confidence and has been documented several times to lead to severe depression[1]. My company failed, a long slow death, after 8 years. I was barely able to pay myself during the latter few years, but I had employees and cofounders that I felt obligated towards... and then…

That's rough, I'm sorry. But thank you for sharing. If you ever want to talk to a techie about it, you can email me in confidence.

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#44

Post by nagrom »

failedthrowaway wrote: post #37
dylangs1030 wrote: post #18

Yes, for several reasons. I'll assume this is my first startup, and I started out at the bottum rung in the tech world, with no prior connections. 1. Most startups (by an incredible supermajority) fail. An acquisition can save you from that, especially if you're one of those startups that generates no revenue but is extremely popular. 2. Not only do most fail, they don't generally fail spectacularly. They die, slowly…

2. Not only do most fail, they don't generally fail spectacularly. They die, slowly and steadily, in a death march that saps the founders of their confidence and has been documented several times to lead to severe depression[1]. My company failed, a long slow death, after 8 years. I was barely able to pay myself during the latter few years, but I had employees and cofounders that I felt obligated towards... and then…

>>> I feel so empty and like I am fake. It has been two years. I haven't said this to anyone before now.

When I last felt like that, I did the same thing. I said nothing to anyone for about 18 months. Eventually, I did talk to someone over a few drinks one night - not someone particularly close to me, just a friend. They didn't say anything profound, they weren't hugely supportive, they didn't offer a new perspective or anything from their own experience. But that outpouring of my feelings was, I recognise now, the first step of the healing process for me - a little like lancing a boil. Kind of silly, but that's the human psyche for you. I can't guarantee that it'll work for you, but it worked for me. Think about trying it?

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#45

Post by dylangs1030 »

_delirium wrote: post #41
simonsarris wrote: post #22

Yes, of course. Ever hear a movie described as "the kind of movie you get to make after winning an Oscar"?[1] There are some movies - special movies - that are the kind of movies directors get to make only after they've made a successful movie. Start-ups seem a lot like that. [1] That was Todd McCarthy, writing for Variety, about the Coen brothers's movie A Serious Man .

Are startups like that? Most of the companies I think of as special in tech were their founders' first startups, not subsequent ones started after a significant cash-out of an earlier one.

Generally, you can't plan to be Larry Page, Sergey Brin, Mark Zuckerberg, Bill Gates, etc. Those are the guys who got it right the first time, but there are other models.

Elon Musk is a prominent example of how this alternative pattern works. He founded Zip2 (relatively unknown), then PayPal, then Tesla, and most recently SpaceX.

Evan Williams follows the same pattern. First PyraLabs (again, relatively unknown), then Blogger, then Twitter, now Medium.

In each case like the aforementioned two, you see a relatively small acquisition, followed by an explosion of ability and ambition.

This is the entire foundation of the "PayPal Mafia" - serial entrepreneurs who start out small (or relatively so) and then start serially disrupting greater markets.

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#46

Post by twrkit »

Yes, because otherwise they would create their own version of it, backed by more/better engineers, more resources, and more visibility, which would slowly crush your own product.

Sure it's heartbreaking to see your labor of love dismantled before your eyes, but with your new bankroll you can now support your family, attempt another startup with your own resources, or live the life of a playboy multimillionaire ;)

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#47

Post by nostrademons »

_delirium wrote: post #41
simonsarris wrote: post #22

Yes, of course. Ever hear a movie described as "the kind of movie you get to make after winning an Oscar"?[1] There are some movies - special movies - that are the kind of movies directors get to make only after they've made a successful movie. Start-ups seem a lot like that. [1] That was Todd McCarthy, writing for Variety, about the Coen brothers's movie A Serious Man .

Are startups like that? Most of the companies I think of as special in tech were their founders' first startups, not subsequent ones started after a significant cash-out of an earlier one.

That is largely because a.) cash-outs of early startups are often not all that significant and b.) you don't here about those cash-outs.

Microsoft was Bill Gates's second startup with Paul Allen (the first was Traf-O-Data), plus they'd done several consulting projects as teenagers. Apple was the second startup for Steve & Steve; the first was selling blue boxes, and it made enough to finance the Apple I. Facebook was Mark Zuckerburg's third; his second was the Synapse Media Player, which reportedly got a $2M buyout offer from Microsoft.

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#48

Post by _delirium »

dylangs1030 wrote: post #45
_delirium wrote: post #41

Earlier quoted context omitted.

Are startups like that? Most of the companies I think of as special in tech were their founders' first startups, not subsequent ones started after a significant cash-out of an earlier one.

Generally, you can't plan to be Larry Page, Sergey Brin, Mark Zuckerberg, Bill Gates, etc. Those are the guys who got it right the first time, but there are other models. Elon Musk is a prominent example of how this alternative pattern works. He founded Zip2 (relatively unknown), then PayPal, then Tesla, and most recently SpaceX. Evan Williams follows the same pattern. First PyraLabs (again, relatively unknown), then…

Elon Musk is a good counterexample, yeah. That reminds me of one other ex-PayPal person: Russell Simmons founded Yelp after PayPal (though he wasn't a PayPal founder, just an early employee).

I mostly think of the PayPal Mafia as subsequently investors rather than founders, though. Spot-checking another 10 or so of the PayPal alumni, most seem to have gone the angel/VC route post-PayPal, rather than starting new businesses themselves.

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#49

Post by gte910h »

dylangs1030 wrote: post #45
_delirium wrote: post #41

Earlier quoted context omitted.

Are startups like that? Most of the companies I think of as special in tech were their founders' first startups, not subsequent ones started after a significant cash-out of an earlier one.

Generally, you can't plan to be Larry Page, Sergey Brin, Mark Zuckerberg, Bill Gates, etc. Those are the guys who got it right the first time, but there are other models. Elon Musk is a prominent example of how this alternative pattern works. He founded Zip2 (relatively unknown), then PayPal, then Tesla, and most recently SpaceX. Evan Williams follows the same pattern. First PyraLabs (again, relatively unknown), then…

> Mark Zuckerberg, Bill Gates, etc. Those are the guys who got it right the first time

See the sister comment for history on that. They are not known for their first startup

Re: Poll: Would you sell your startup for 5x to Google so they can kill it?

#50

Post by kkowalczyk »

Interesting how everyone is falling for this logical fallacy of a question.

There are 2 modes in which Google buys a company.

1. For the product. This is the case that might entail 5x valuation and in this mode the intent is never to "kill" it. That would be stupid.

Obviously, it doesn't always work out and the product might end up dead but it's never the intent of neither party at the time of acquisition.

2. For the people i.e. acu-hire. In that case the startup is effectively dead anyway and the founders and investors know it. Google won't pay 5x in that case, both parties know that the product will be shut down (but it would be anyway at some point) and the team simply gets a lucrative (?) job offer.

There is never a case where Google pays 5x for a product they intend to immediately "kill".

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