4 ms·
You just summed up a big part of silicon valley. Everyone thinks it's written in the stars that they are the next billion dollar company; anything else is given
by GuiA 12y ago
You just summed up a big part of silicon valley. Everyone thinks it's written in the stars that they are the next billion dollar company; anything else is given the derogatory "lifestyle business".
It's just a silly game that people way above us are playing. When I left a failing startup (that could have had seen some success had it been less ambitious and raised less debt), the CTO told me: "the VCs have more money than we have time".
- x0x0 12y agoI also worked for a company that got very serious acquisition interest in mid 8 figures, but the founders wanted a 9 figure company (and 1-2 weren't the first digits they had in mind either.) We swung for the bleachers, and went out of business.
- __Joker 12y agoI got the impression that most of VC simply look for multifold returns and they shun companies which can be successful in a limited way with moderate returns.
- mgkimsal 12y agoYears ago I pitched a VC with a working prototype and biz plan - actually was looking more for angel-level money (perhaps) - somewhere between $300-$500k, and I was projecting revenue (which would be mostly profits) of $5m/year within 4 years (aggressive growth by my estimation, but doable). No dice - they wanted to see numbers north of $20m/year for sizable exit before they'd be willing to put in.. $500k. Those numbers always struck me as insane, but have stuck with me (this was... 15 years ago perhaps now).
- velodrome 12y agoDid you go through with the business? If so, did you end up reaching your goal?
- mgkimsal 12y agoNo, ended up scrapping it. Not just because of that, but it was a small factor.
- tptacek 12y agoIt's understandable why this would irritate you but worth remembering that the VC economics don't work out for reasonable-sized successes. The wins have to pay for the losses, and the win rate is something like 2 in 10.
- JohnLen 12y agoAgreed. Many investors too looking for revolutionary ideas or products rather than general usage products which has proven to be successful.