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Would you like him to apologize because you made a bad deal for yourself? His comment is over-broad and snarky, but it simultaneously makes a good point.

by dtby 16y ago

URSpider94 16y ago
At the risk of taking the troll-bait, I'm not asking for any kind of apology or sympathy. I'm actually quite happy with the deal I got all in all, and in any case, I wasn't at the table when the terms were set. I'm simply pointing out that it's extremely naive to think that focusing on creating long-term value for customers cures all ills. In fact, we are in a period in business history where companies that have achieved cash-flow positive with good growth and a sizable revenue stream are at a loss as to how to free up cash for continued growth (and to reward early investors and employees). IPO'ing brings huge overhead with Sarbox, not to mention the requirement to manage the business to quarterly goals. Continued venture funding is usually quite a bad deal, loans are still really hard to get, and more creative options (like FB's private placement) are under lots of scrutiny from the SEC. That leaves a buyout or private sale as the two best options, neither of which is an efficient transaction (ie unlikely to bring the highest value), and both of which are likely to come with some unattractive terms. As an entrepreneur, don't underestimate the importance of this question: once you create a valuable business, how will you transform the equity that you've created for yourself, your employees and your backers into cash?
- dtby 16y ago
  At the risk oif not being labeled a troll, you suggestion was that simeine had nor considered the very difficult circumstances whic made you accept a deal about which you feel compelled to complain on HN. I have made an exceptional number of bad gambles in my life, butg I have never felt the ned to either justify or disclaim responsibility for the choices I made on a public forum. If this sounds dickish, I apologize, sincerely. I have made the best decsions of which I was capable at any moment in time... my failings do not tepresent a failure on the part of those who depend on me.

Would you like him to apologize because you made a bad deal for yourself? His comment is over-broad and snarky, but it simultaneously makes a good point.

by dtby 16y ago

Would you like him to apologize because you made a bad deal for yourself? His comment is over-broad and snarky, but it simultaneously makes a good point.

URSpider94 16y ago

At the risk of taking the troll-bait, I'm not asking for any kind of apology or sympathy. I'm actually quite happy with the deal I got all in all, and in any case, I wasn't at the table when the terms were set. I'm simply pointing out that it's extremely naive to think that focusing on creating long-term value for customers cures all ills. In fact, we are in a period in business history where companies that have achieved cash-flow positive with good growth and a sizable revenue stream are at a loss as to how to free up cash for continued growth (and to reward early investors and employees). IPO'ing brings huge overhead with Sarbox, not to mention the requirement to manage the business to quarterly goals. Continued venture funding is usually quite a bad deal, loans are still really hard to get, and more creative options (like FB's private placement) are under lots of scrutiny from the SEC. That leaves a buyout or private sale as the two best options, neither of which is an efficient transaction (ie unlikely to bring the highest value), and both of which are likely to come with some unattractive terms. As an entrepreneur, don't underestimate the importance of this question: once you create a valuable business, how will you transform the equity that you've created for yourself, your employees and your backers into cash?

dtby 16y ago
At the risk oif not being labeled a troll, you suggestion was that simeine had nor considered the very difficult circumstances whic made you accept a deal about which you feel compelled to complain on HN. I have made an exceptional number of bad gambles in my life, butg I have never felt the ned to either justify or disclaim responsibility for the choices I made on a public forum. If this sounds dickish, I apologize, sincerely. I have made the best decsions of which I was capable at any moment in time... my failings do not tepresent a failure on the part of those who depend on me.