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I think it's really cool that Web 2.0 entrepreneurs actually want to build businesses that have a clear business model, sell a product that people want, and hav
by il 16y ago
I think it's really cool that Web 2.0 entrepreneurs actually want to build businesses that have a clear business model, sell a product that people want, and have a clear path to long-term, sustainable profitability.
That said, I don't know how well this type of business correlates with raising such a large angel round- are all of those angel investors on board with that plan?
- vaksel 16y agowhat they say in public doesn't always match what they say in private.(i.e. just take the whole demandmedia "we are super profitable...HONEST!") in private, I'd bet that they are looking to build this up for 4-5 years, then sell it off to intuit.
- speby 16y agoI wouldn't immediately assume Intuit is automatically the most likely acquirer.
- scottkrager 16y agoThey seem the most likely....who else might be in the mix? A large progressive bank?
- alttab 16y agoInuit already bought Mint, why would they need inDinero? Mint has way more users, and already does the hard part - syncing with banks securely and categorizing expenses. Mint/Inuit could add a cash-flow module to their product and be done with it. Depending on how Jessica decides to position it, I could see it exiting to a buyer like Freshbooks, where the combination product makes a suite of small-business finance tools. Like a mini-Microsoft Financal-Office (except in the cloud).
- robryan 16y agoThere is middle cases to where they build it up for 4-5 years and most of the investors cashout to a big player like intuit buying a sizeable chunk.
- mlinsey 16y agoSeems strange to say that investors would be unhappy with having a clear business model, selling products people want, and having a clear path to long-term, sustainable profitability! (Some) investors dislike the above when it comes at the expense of growth, and I think InDinero will be also focusing on growth. If you're saying that investors would be unhappy that InDinero is not planning to flip in a couple years - if anything there are many more investors who dislike companies who seem designed around selling early instead of shooting for the moon (ie, an IPO).
- il 16y agoYeah, I was wondering if investors knew they were in it for the long haul when they were investing.
- davidu 16y agoThe secondary markets for great companies are very liquid -- it's not an issue today for investors.
- ghotli 16y agoI ask this question out of ignorance. An angel investment in a startup would seem to me like a very illiquid asset. Do they just go down to a cocktail party and sell away their "angel shares" or is there some sort of structured market for this sort of thing?
- davi 16y agoNot that I really know either, but I found this useful: http://www.kalzumeus.com/2010/09/02/new-trends-in-startup-investing-explained-for-laymen/ http://www.kalzumeus.com/2010/09/02/new-trends-in-startup-in... “You owe me $20, with interest. Don’t worry about paying me back right now. Instead, next time you raise money or sell the company, we’re going to pretend that I’m either investing with the other guy or selling with you." So if indinero takes more money, the early investors could sell their hypothetical convertible notes to the new investors.
- rokhayakebe 16y agoWhat if they already had dozens of paying customers by the time they were raising capital?
- anigbrowl 16y agoIf they're not, she's certainly put them on notice. Interesting.