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Me and a friend we didn't have money but we had a great plan for a company, which already after a year was making a profit. But we needed some investor in the b
by jeena 8y ago
Me and a friend we didn't have money but we had a great plan for a company, which already after a year was making a profit. But we needed some investor in the beginning and a friend of my friend just made a lot of money buying and selling a flat in Stockholm and he wanted to invest in us. So he got 51% of the shares and we would get money to start.
We two started the company, started making profits after one year and started growing. It was a great time back then, especially as one of the first companies which could make small iPhone apps for other companies. We had so much to do.
But after some time, I think it was about 2 years after we started, the guy who invested the money needed it back, but because we were growing and invested back into the company we ourselves didn't have the money yet to pay him back. This is when he sold his 51% shares to a guy who nobody of us knew.
Which was the beginning of the end of our company, because in direct contrast, suddenly we weren't in the driving seat anymore but that new guy who had completely different ideas what to do with the company. He also screw us up on a personal level and we hated his guts for that, which didn't help or a professional level. And because he already had more than enough money he started using this company as a way to avoid taxes more than to deliver great products to customers.
We still tried hard, but after 2 years my friend left and shortly after that me and the other two devs too, which left him the sales guys and the accountant.
- seniorivn 8y agoSounds like all the company had is people and your expertise. Why didn't you quit and create a new company with the same people? Also, knowing what you know now, would it be better to sell the whole company when your investor wanted an exit? Or what you think you should've done?
- Joe-Z 8y agoNot giving a guy who’s bringing nothing to the table but money 51% of your company sounds like a good idea. Not trying to be mean, but as soon as I read that I was like „Oh boy...“
- jeena 8y agoThat is basically what we learned from it. About a year ago me and two other friends wanted to start a new company and we found investors but they wanted to have those 51% so after many negotiations and back and forth the thing they didn't want to give up was the 51% which lead to us not working together with them. It's just not worth to invest all the work into a new company which you don't own to a degree that you can decide what to do.
- Joe-Z 8y agoGood on you for standing up for yourself. I hope everything worked out in the end!
- jeena 8y agoIsn't that what practically all smaller software companies have? Personal life came in between and people later moved around, etc. now we all have normal regular jobs at bigger companies. I'd say I learned never give 51% to the person who only invests money but not his life, blood and sweat into it. It's not worth it and it will screw you up.