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Bingo. It’s pretty hard to get that kind of money unless you’re just exceptionally lucky.
by ttul 8y ago
Bingo. It’s pretty hard to get that kind of money unless you’re just exceptionally lucky.
- onion2k 8y agoWhat your comment tells me is that you believe it's easier to build a $210m company with the help of VC than it is to build a $38m company without VC. Why would that be the case? The $210m company has 5 times more value - building up to that is really hard, and not really just a matter of how much runway you have available. (Alternatively, you know that VC's overvalue things, so maybe it's easier to inflate the numbers on paper than actually building real value in the business. That's certainly true but really cynical.)
- nl 8y agoThere are some alternative readings though. It's not hard to make an argument that a VC will make it easier to find buyers for your company. In the Bigelow HeroX challenge, they point out that the price range they see for private sales can range by well over 50%. Just finding those acquirers can be a challenge and it isn't obvious to me that it is 5 times easier to find those buyers at $38M than at $210M.