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Has anyone just completed an exit?

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Re: Has anyone just completed an exit?

#21

Post by steve___ »

pxlpshr wrote: post #15
steve___ wrote: post #11

Earlier quoted context omitted.

I started the business as a hobby in 1995 while I completed high school. In 1999 I met Jim and became much more focused. I didn't have the 'startup' concept until 2005 when I read Paul Graham's essay, "How to Make Wealth". In hindsight we should have exited the company somewhere between 2003 and 2005. re: not something VCs are interested in - we didn't require VC money. I do not think VC money is always necessary in…

I think you should call this out somewhere because your about page certainly does not paint the whole story. My assumption above was simply the result of reading what is likely the most important page. A lifestyle business was my first conclusion based on your tone and sparse details. Bad VCs add complexity and it's wrong to stereotype all of them as the same, where there is capital there is greed. Good VCs bring a t…

re: adding the above info to the about page - I agree. I will do this.

Re: Has anyone just completed an exit?

#22

Post by webwright »

pwnstigator wrote: post #8

Note: insisting that your co-founders have "completed an exit" is not going to make you any friends here, because you're suggesting that you're better than others less experienced or less fortunate who have not. Success is obviously preferable to failure, and we all believe that we're talented to a degree that gives us a high enough likelihood of success for startups to be worth pursuing. However, this sort of extrem…

Strongly disagree. It might be unattractive to SOME, but it's probably attractive to the people they are filtering for, who (among other things):

- Are proven to be able to build a business - Probably have the cash to actually work for equity INDEFINITELY. Most people have a very finite amount of time they can work for equity before they start getting hungry and have to pick up a day job or some consulting work. - Probably don't need startup education... i.e. they know about the highs, the lows, the shifting landscapes, etc. - Aren't currently deeply engaged with another project.

Personally, I'm still iffy on the "founder personal ad", whatever the filter. It's like advertising for a wife... I think it'd be better to advertise that you're interested in "dating" and seeing where it leads. But if you're going to go this route, veteran founders with a track record seems like an obvious filter.

Re: Has anyone just completed an exit?

#23

Post by webwright »

pwnstigator wrote: post #20
iiijjjiii wrote: post #18

Earlier quoted context omitted.

Yeah, I know what you're saying. However, we often fool ourselves about what we're capable of. If someone has developed a startup and completed an exit and they're prepared to go at it again, that speaks much louder than someone who claims they are willing but has never done it.

Of course. What's obnoxious about "completed an exit" is that talented people can fail to meet this for reasons that aren't their fault. Possibly the VC wanted to aim for an IPO, they failed because of the downturn, and now they haven't "completed an exit". I know of stories like this. I wouldn't bat an eye if you said you were looking for people with substantial entrepreneurial experience. I just think the specific…

It's not just about talent.

It's about (among other things, I assume):

- Wealth (exit = cash = ability to work for equity for an indeterminate period) - Availability (recent exit = not currently engaged with another project)

The first is the biggie. I'd say 99.9% of people on HN can't say "I will eschew all paying work for up to 2 years and can toss a few hundred grand of my own money in if we need a cash infusion".

Of course, the recent exit thing is a problem, too. Most buyers lock in the founders for 1-2 years, so recent exiteers will have golden handcuffs.

Re: Has anyone just completed an exit?

#24

Post by steve___ »

webwright wrote: post #23
pwnstigator wrote: post #20

Earlier quoted context omitted.

Of course. What's obnoxious about "completed an exit" is that talented people can fail to meet this for reasons that aren't their fault. Possibly the VC wanted to aim for an IPO, they failed because of the downturn, and now they haven't "completed an exit". I know of stories like this. I wouldn't bat an eye if you said you were looking for people with substantial entrepreneurial experience. I just think the specific…

It's not just about talent. It's about (among other things, I assume): - Wealth (exit = cash = ability to work for equity for an indeterminate period) - Availability (recent exit = not currently engaged with another project) The first is the biggie. I'd say 99.9% of people on HN can't say "I will eschew all paying work for up to 2 years and can toss a few hundred grand of my own money in if we need a cash infusion".…

We had a six month earn out. It ended on July 15, 2009. We took slightly less money to get out sooner.

Re: Has anyone just completed an exit?

#25

Post by run4yourlives »

pxlpshr wrote: post #6
shafqat wrote: post #3

What was the actual startup that they exited?

porchlight.ca - an ISP. I don't think a 13-year business with under $3M in revenue is a startup, sounds more like a lifestyle business. It's also not something VCs would be interested in. This falls under super-laid back, and not something most people on HN would likely be attracted either. The serial entrepreneurs I admire have done 2-4 businesses in 10 years, all with exits well over $50M.

I don't think flipping businesses is a model to admire.

They aren't creating any more value than some guy selling a get rich quick scheme.

And given the amount of attention DHH receives for taking the counterpoint to your argument here, I'd disagree that "most people on HN" would not be interested in this.

Re: Has anyone just completed an exit?

#27

Post by iiijjjiii »

run4yourlives wrote: post #25
pxlpshr wrote: post #6

Earlier quoted context omitted.

porchlight.ca - an ISP. I don't think a 13-year business with under $3M in revenue is a startup, sounds more like a lifestyle business. It's also not something VCs would be interested in. This falls under super-laid back, and not something most people on HN would likely be attracted either. The serial entrepreneurs I admire have done 2-4 businesses in 10 years, all with exits well over $50M.

I don't think flipping businesses is a model to admire. They aren't creating any more value than some guy selling a get rich quick scheme. And given the amount of attention DHH receives for taking the counterpoint to your argument here, I'd disagree that "most people on HN" would not be interested in this.

Generally a business goes through three stages: innovation (create and fine tune the product), growth (increase market share through marketing), and harvest (maintain large customer base). We experienced all three stages with our first company. Each stage is unique. Each requires a different mode of operation. They require different talents, different ways of thinking, and different filters for making decisions. Conventional wisdom says this is the desired course of a business. You start out small, innovate, grow a customer base into a huge corp and then harvest the rewards.

After reading Paul Graham's "How to Make Wealth" essay, we had an 'aha moment'. It's not necessary for a business to do all three stages. In fact it's not efficient and usually not desirable. Some people/companies are good at innovation, some are good at growth, and some are good are harvest. Each should focus on their strengths.

The model of creating startups and then exiting is about focusing on the innovation stage.

Re: Has anyone just completed an exit?

#28

Post by pxlpshr »

run4yourlives wrote: post #25
pxlpshr wrote: post #6

Earlier quoted context omitted.

porchlight.ca - an ISP. I don't think a 13-year business with under $3M in revenue is a startup, sounds more like a lifestyle business. It's also not something VCs would be interested in. This falls under super-laid back, and not something most people on HN would likely be attracted either. The serial entrepreneurs I admire have done 2-4 businesses in 10 years, all with exits well over $50M.

I don't think flipping businesses is a model to admire. They aren't creating any more value than some guy selling a get rich quick scheme. And given the amount of attention DHH receives for taking the counterpoint to your argument here, I'd disagree that "most people on HN" would not be interested in this.

you have a really biased view of serial entrepreneurs, or maybe I do since they've been so generous toward us. they are world's apart from get-rich-quick guys. They build real value, quickly, and it's an extremely hard thing to do more than once, specifically in technology where innovation and speed often move in parallel. We're not talking about MLM herbal medicine schemes here.

If most HN readers were interested in lifestyle businesses, I question why they vote up so many pg, et. al. articles about the difficulties and intensity of startups. To your point however, my initial comment was presumptuous and Steve cleared it up...

Re: Has anyone just completed an exit?

#29

Post by webwright »

steve___ wrote: post #24
webwright wrote: post #23

Earlier quoted context omitted.

It's not just about talent. It's about (among other things, I assume): - Wealth (exit = cash = ability to work for equity for an indeterminate period) - Availability (recent exit = not currently engaged with another project) The first is the biggie. I'd say 99.9% of people on HN can't say "I will eschew all paying work for up to 2 years and can toss a few hundred grand of my own money in if we need a cash infusion".…

We had a six month earn out. It ended on July 15, 2009. We took slightly less money to get out sooner.

That's a great deal (makes sense for an ISP)! But if you're looking for software entrepreneurs who are coming free, it might mean people who sold 2 or 3 years ago, depending on the business.
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