Re:My thoughts on why I will not call my business a startup ...
by wtvanhest on Friday January 13, 2012 @01:15PM
(#3461657)
VC's and experienced angel investors use a clause in the funding agreement which can force you to sell. That clause is probably never used in real life but its presence in the world of VC explains itself.
Really it is unlikely that you will create a lifestyle business which is funded with venture money and is one of the things that vcs avoid since it is a failure from their standpoint.
Re:My thoughts on why I will not call my business a startup ...
by badclient on Friday January 13, 2012 @12:42PM
(#3461504)
In that case, everything is a game. When I throw money towards a milkshake at McDonalds, I am betting that I will derive some pleasure from consuming it. Sometimes I do, sometimes I don't.
So, everything's a game - with varying odds of winning?
If a VC puts money and a startup doesn't get acquired, or goes to an IPO, but becomes profitable, the VC doesn't get anything, right (assuming no dividends)?
So making profit in that sense is still not considered success. So there's some validity to the idea that startups are a game. You're betting on a bigger fool acquiring it, whether it's another company, or the public market. Sort of like buying stocks.