Is everything about an exit strategy these days?

https://news.ycombinator.com/item?id=7529424

by abdophoto • 12 years ago

5 5 12 years ago

news.ycombinator.com

I asked someone today who happens to work for a well-known VC firm to give me their input on my app. I really just wanted to know what they thought of it. Within just a few minutes of chatting the conversation shifted to thinking about how to exit.

Truthfully, it's the last thing on my mind right now. This is my first app and I simply want to build my company and see where it goes from there. Everything so far has been bootstrapped.

Is this how everyone is thinking these days? Is it all about the exit?

abdophoto• 12 years ago

If you care to download the app, here's the link (iPhone only)

https://itunes.apple.com/us/app/tech-block/id842961705?mt=8

It's bare bones, but the foundation is there.

erichurkman• 12 years ago

Do you care about an exit? You could focus on a sustainable business first, of course – it's your app, that's your call. No one is forcing you to have an exit strategy yet [1].

[1] Assuming you have not taken outside money yet, and it really is 'your' app.

yaur• 12 years ago

In the long term yes. Do you plan to get acquired or IPO? If you don't get acquired do you have a sustainable business, lifestyle* or scalable? But if you haven't taken money yet and don't care about working a day job to pay your bills while you do what you love on the side you don't need to think about these things. If you haven't thought about how the investors will make money you aren't ready to talk to them yet, and if you talk to them before you are ready you are just wasting time and burning bridges you might need later.

*only if you haven't taken money.

idunno246• 12 years ago

Everyone in VC for sure - if you are working with VC you are expected to be trying to get a multiplier payout for them. So presumably this person spends his time evaluating companies on exiting. If you were talking to someone who worked in loans, I'd bet the question would be closer to how you plan to cover costs.

jesusmichael• 12 years ago

Well what did you expect a VC to tell you? He's all about the $$$ you should have asked a user, coder or designer, if you wanted constructive feedback. However, if you're building a company for anything more than the thrill of filling out incorporation papers then you better be thinking about how to make as much $$ out of it as you can. Employees have light bills, and kids, they have to buy dog food and Soy milk lattes (kid temp), and if your head isn't into making the cash that will pay their salaries... then get out of the business end of it and find a job.

Is everything about an exit strategy these days?

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