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But sometimes you need to sell your company because simply you do not have enough resources to fulfill your mission and vision.
by mrkramer 5y ago
But sometimes you need to sell your company because simply you do not have enough resources to fulfill your mission and vision.
- globular-toast 5y agoThat's what the stock market is for.
- Hamuko 5y agoOr just funding rounds.
- globular-toast 5y agoYes, but the stock market would be better as it would allow the public to invest. Funding rounds are just a way to let the rich and privileged get even richer.
- oblio 5y agoNo, you're wrong. They're still taking risks. You see, when you have 1000 million and you invest 500 million in chunks of 1 million into 500 different companies, practically guaranteeing a return of >500 million [1], then you're taking a huge risk! Almost like the Average Joe/Jane investing on the stock market :-) [1] Since it's supremely unlikely all 500 companies fail, and it's much more likely that at least 1 of them comes up with a decent return on investment.
- thesuitonym 5y agoTraditionally we would call that a failed business.
- mrkramer 5y agoInstagram and YouTube were failed businesses? They sold to big companies in order to scale to billions of users and millions of SMBs because they didn't have knowledge nor human and financial resources for such task.
- delecti 5y agoThere's no way to know whether they would have failed without being acquired. That isn't the point being made though.
- TheRealDunkirk 5y agoMaybe if they hadn't scaled to, oh, I don't know, THE ENTIRE PLANET, maybe some MORE companies could come in and build successful businesses in the space, and, hey, maybe even figure out how to federate and interoperate. I know, I know. Crazy talk.
- JumpCrisscross 5y ago> maybe some MORE companies could come in and build successful businesses in the space This rejects that these businesses required scale to be successful, strengthening the claim that they were not “failed businesses.”
- thesuitonym 5y agoThey only need scale if you accept the premise that they need to be the only provider in that space.
- hotpotamus 5y agoI wonder about youtube - I see people say it still loses money though I don't know if that's true, but if it is, then is it a successful business? It's an amazing feat no doubt, but other than that I don't know what to make of it as a business or a force in the world.
- 5y ago
- chrisseaton 5y agoIf the business has a value more than you put into it then you haven’t failed.
- Spivak 5y agoProducts that can't be profitable as a standalone business but can be as part of a larger company's portfolio isn't really a useful definition of failed unless you redefine the term.
- Philadelphia 5y agoIf they can’t be profitable as standalone businesses, by definition they’re failing as businesses.
- tsimionescu 5y agoA business can fail even with a good product. There are thousands of startups all over the world every year that can attest to that.