3 ms·

On point. It can happen if your company has great IP, or you managed to capture a niche market. When that happens it's a no brainer: sell. You can still build

On point. It can happen if your company has great IP, or you managed to capture a niche market. When that happens it's a no brainer: sell. You can still build another company while having a cushion for you and your family. An exception to this would rule would be that you have a good chance at becoming a leading company in your domain.

fergie 8y ago
It depends. If you have nothing from before then selling for $2.2M is not that great of an idea- you might walk away with $1.1M after tax. This would be the equivalent of a modest bay area property, or 4-8 years SWE salary. In other words- if you had a family, you would find it difficult to support them and finance a new venture.
- jacquesm 8y ago
  Going from nothing to $1.1M in the bank after tax is 'leveling up', and if you're smart you would take that chance immediately. In your life there are maybe two or three opportunities for such a leveling up and missing out on a guaranteed one is not something I would do. Of course if you are dead certain that you will be able to get more out of it you should but if the certainty is anything under 75% or so you should probably take the certain route and see if you can be smart to do it again through some other route. This is a tough call to make, but also a luxury problem, most founders never get to that point.
  - hndamien 8y ago
    Advice I could have used last year. Thanks, it’s helpful now anyway if I ever get the chance again.
  - woah 8y ago
    What do you do after this leveling up?
    - jacquesm 8y ago
      Try to find a larger table, and manage your risk very carefully because you are still fragile and it is probably easier to go from $1M back to nothing than it is to go from $1M to $2M. The thing you definitely shouldn't do is change your lifestyle, that way you will be almost certainly back to square #1 after a couple of years.
    - munchbunny 8y ago
      If you're feeling conservative, find another well paying job in your preferred area. Use your windfall however you deem appropriate (like saving/investing it to cover kids/retirement/emergency fund). If you're feeling aggressive, launch into another startup. If you're feeling somewhere in the middle, save some, invest some, seed some startups, and find another interesting job. $1.1m is simultaneously not that much and more than you think, it depends a lot on your chosen perspective.

fergie 8y ago

It depends. If you have nothing from before then selling for $2.2M is not that great of an idea- you might walk away with $1.1M after tax. This would be the equivalent of a modest bay area property, or 4-8 years SWE salary. In other words- if you had a family, you would find it difficult to support them and finance a new venture.

jacquesm 8y ago
Going from nothing to $1.1M in the bank after tax is 'leveling up', and if you're smart you would take that chance immediately. In your life there are maybe two or three opportunities for such a leveling up and missing out on a guaranteed one is not something I would do. Of course if you are dead certain that you will be able to get more out of it you should but if the certainty is anything under 75% or so you should probably take the certain route and see if you can be smart to do it again through some other route. This is a tough call to make, but also a luxury problem, most founders never get to that point.
- hndamien 8y ago
  Advice I could have used last year. Thanks, it’s helpful now anyway if I ever get the chance again.
- woah 8y ago
  What do you do after this leveling up?
  - jacquesm 8y ago
    Try to find a larger table, and manage your risk very carefully because you are still fragile and it is probably easier to go from $1M back to nothing than it is to go from $1M to $2M. The thing you definitely shouldn't do is change your lifestyle, that way you will be almost certainly back to square #1 after a couple of years.
  - munchbunny 8y ago
    If you're feeling conservative, find another well paying job in your preferred area. Use your windfall however you deem appropriate (like saving/investing it to cover kids/retirement/emergency fund). If you're feeling aggressive, launch into another startup. If you're feeling somewhere in the middle, save some, invest some, seed some startups, and find another interesting job. $1.1m is simultaneously not that much and more than you think, it depends a lot on your chosen perspective.