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> Why did they need an exit? Because the people who like to start new companies and take lots of risks generally tend to not like running stable businesses and
by airstrike 5y ago
> Why did they need an exit?
Because the people who like to start new companies and take lots of risks generally tend to not like running stable businesses and dealing with FP&A managers, lawyers, compliance and tax experts
- BaseballPhysics 5y ago> Because the people who like to start new companies and take lots of risks generally tend to not like running stable businesses and dealing with FP&A managers, lawyers, compliance and tax experts ... in SV/the tech industry. That's kinda my entire point. Stealing someone else's analogy: If you went to a bank to get a small business loan to open up a coffee shop, and you told them "Yeah, I'm hoping to take a bunch of your money, open a coffee shop, never return a profit, and then sell it to Starbucks", you'd get laughed out of the room. In SV that's a business model.
- charcircuit 5y agoYou won't get much money selling a small coffee shop which is why it won't work. There is a small upper bound to what you can possibly be worth.
- Talanes 5y agoThe more accurate to life version of that sale is "I'm going to open a small regional coffee chain and then sell it to JAB Holding Company" https://en.wikipedia.org/wiki/JAB_Holding_Company https://en.wikipedia.org/wiki/JAB_Holding_Company
- airstrike 5y agoCoffee shops don't grow at the speed software does because they are limited by the physical world. There aren't many "startup industrial companies"