3 ms·
Small exits are interesting, and overlooked. I see the following reasons for this: - acquisition price for companies probably follow a power law curve, meaning
by mixmax 18y ago
Small exits are interesting, and overlooked. I see the following reasons for this:
- acquisition price for companies probably follow a power law curve, meaning lots of small acquisitions and far fewer large acquisitions or IPO's. Size of companies follow a powerlaw, so there's a good chance acquisition size does too. I haven't seen any research on the subject though. This distribution means that your chance of a small exit is significantly better.
- VC's invest too much money. If they invest $10 mill. in a company and expect a 1000% rate of return on successful exits they (and therefore you) have no choice but to go for the scarce big acquisition or IPO's.
- your life will improve if you make $ 1 million, but you won't get much more happiness from $100 million. So why gamble?
- goodgoblin 18y agoI definitely benefited from the article though - seeing as how this is the endgame for so many startups it is somewhat surprising that we see so little about this part. I guess its a little like the wedding night - everyone knows you got married, but that bit is held very close. Is it b/c of non-disclosure agreements? Tons of companies have gotten acquired and aside from the reddit's story a few years back I don't remember seeing or reading alot of those tales, though I wish I could. It would make great bedtime reading or anytime reading really, something to help keep hope and keep going. And I agree, $1 million would make my life better, but really, I thought the first $20 million was supposed to be the hardest.