Re:MIT And Dropbox Alums Launch Inbox, a Next-Generation Ema...
by wpietri on Tuesday July 08, 2014 @11:32AM
(#8004974)
As a fellow receiver of venture funding, I think you need to have more explanation than that if you want to be convincing.
You took investment money. If you're a typical startup, you plan to take more. Investors are in this for returns. VCs are in it for returns in the timeframe of their particular funds.
That you're not planning to get acquired makes it sound like you have no plan. What you really need is a plan to stay independent and sustainable forever. Which means having some sort of plan to pay off your investors. And if that isn't being acquired, then I presume that means an IPO within 10 years. That is an unlikely outcome for any startup, and personally I'd say it's especially unlikely for an infrastructure company.
As an aside, I definitely think it's possible to go after something big while planning to flip the company. However, in that case it's important to talk as if you won't be flipping the company.
You took investment money. If you're a typical startup, you plan to take more. Investors are in this for returns. VCs are in it for returns in the timeframe of their particular funds.
That you're not planning to get acquired makes it sound like you have no plan. What you really need is a plan to stay independent and sustainable forever. Which means having some sort of plan to pay off your investors. And if that isn't being acquired, then I presume that means an IPO within 10 years. That is an unlikely outcome for any startup, and personally I'd say it's especially unlikely for an infrastructure company.
As an aside, I definitely think it's possible to go after something big while planning to flip the company. However, in that case it's important to talk as if you won't be flipping the company.