4 ms·
I'd take a solid cash cow producing producing value for customers at an A-round size over growing it to D-round size any day. Maybe because I've just been thro
by dublin 3y ago
I'd take a solid cash cow producing producing value for customers at an A-round size over growing it to D-round size any day. Maybe because I've just been through enough of this crap to know that yes, you want to make money with your startup, but there are some things no amount of money can compensate you for...
And a company spinning off a fair amount of cash can be grown surprisingly rapidly organically, though it does take several changes in how the company is run as it hits inflection points (there are usually several!) due to growth (e.g. people, processes, and effective business/marketing/sales oversight become more important to grow beyond $6-10M/yr...)
- mdorazio 3y agoIn the first scenario, how do you plan to return the A-round investor money at a multiple and timeframe they'll be happy with for their fund?