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The investors have to have some way to convert their ownership in the company into liquid assets at some point. Either that's on the open market through an IPO,
by oddevan 12y ago
The investors have to have some way to convert their ownership in the company into liquid assets at some point. Either that's on the open market through an IPO, by another company through an aquisition, or maybe Ello can have enough cash-on-hand to buy back those shares or pay dividends to their investors.
If there's other ways, please tell me; I'm genuinely curious about this! But as far as I can tell, even "run[ning] an actual business" has to have some sort of "exit" for the investors. It's my hope that Ello can buck the "acquire or IPO" trope, but their investors have to be on board with it. And with $5,500,000 invested, even the most patient investors have a limit.
- 67726e 12y agoExit seems to imply the "get rich quick" scenarios of a buyout or IPO. I'm saying an alternative exists: Make money running a business the old fashioned way. The last company I was a part of had a similar level of investment, and they aren't selling. They aren't looking at an IPO, instead they manage a healthy 20M/year in revenue, with a a healthy profit margin. Not everything is an "exit"