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If I might ask a more general question about start-ups, particularly people who have some experience directly with start-ups. Is the goal of the start-up alway
by escapologybb 8y ago
If I might ask a more general question about start-ups, particularly people who have some experience directly with start-ups.
Is the goal of the start-up always to aim for an exit by being bought by somebody bigger, or do most people start businesses with a view to longevity but then end up being given offers they can't refuse? Or is it impossible to generalise? I suspect it's the latter as is usually the way with complicated human systems.
I always wondered if the point of a start-up was to have a good idea, get a load of funding to flesh the idea out and then throw your bait into the water hoping some large company like Google or Apple comes along and snaps up your IP for an eye watering amount.
Any insight would be greatly appreciated. :-)
- mikkelam 8y agoIf you get funding from investors most of them will want their money back plus returns. That’s why they invest after all. The exit is how the investors get their money back
- deleted 8y ago[deleted]
- k__ 8y agoIPO and buyback is also a way.
- stefano 8y agoThey could get their money back by (gasp) getting their share of the company profits. Which is actually how it usually works outside of SV-like investments.
- JumpCrisscross 8y ago> getting their share of the company profits Early-stage investors and dividend-collecting investors are not the same. They might be different parts of a single portfolio, but they're separate strategies. Switching from one mode to the other is something public markets are very good at. If a company wants to pay dividends instead of getting acquired, it should go public and start paying dividends.