[HN Gopher] Startup to exit: lessons from a YC founder
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       Startup to exit: lessons from a YC founder
        
       Author : AnhTho_FR
       Score  : 62 points
       Date   : 2022-11-23 09:42 UTC (13 hours ago)
        
 (HTM) web link (www.lennysnewsletter.com)
 (TXT) w3m dump (www.lennysnewsletter.com)
        
       | Beldin wrote:
       | While i appreciate the story, I will caution for survivor bias.
       | 
       | E.g, someone who very publicly pushed their startup may regret
       | that because their development process couldn't keep up with
       | customer interest, due to which they "lost the momentum" and
       | rebuilding momentum was insanely difficult having soured
       | relationships earlier.
        
       | peter_d_sherman wrote:
       | >"At YC's first batch dinner, we recognized that drinks were
       | missing from the menu. Founder thirst became our opportunity. We
       | showed up with a cooler full of sparkling waters and a makeshift
       | sign that read "Benefits & Bubbles."
       | 
       |  _In exchange for signing up with Savvy, we handed out drinks._
       | 
       | To this day, _that lemon-sparkling-water stand remains our
       | highest-ROI marketing tactic._ "
       | 
       | Brilliant, absolutely brilliant!
       | 
       | I always love it when somebody discovers a _simple, elegant,
       | grass-roots marketing method_ -- that works on a local level!
       | 
       | Well played!
        
       | perpil wrote:
       | What a thrilling tale! It's clear why he was ultimately
       | successful. He deftly juked through each challenge AND he's a
       | great storyteller.
        
       | qprofyeh wrote:
       | Is it considered expected, permitted conduct for founders to lie
       | about reasons to sell and personal emergencies to deceive and
       | pressure acquirers?
       | 
       | Can someone who lacks that mindset or skillset perhaps, still
       | successfully sell their startup?
        
         | goodJobWalrus wrote:
         | You'd be better off the hire a broker / M&A firm do deal with
         | this on your behalf.
        
           | rjzzleep wrote:
           | How much do they pocket?
        
             | makestuff wrote:
             | https://masource.org/a-summary-of-ma-fees-for-sell-side-
             | tran...
             | 
             | I was curious as well and most sources I found point to a
             | similar structure above. Basically the more money they get,
             | the bigger the fee, and then there is some sort of retainer
             | to cover their costs.
        
         | [deleted]
        
         | arcturus17 wrote:
         | I'm brutally honest, often to my detriment in commercial
         | activities. But as far as BS goes, "I have an urgent thing on
         | Friday so we need to close today" is not too terrible IMO. His
         | urgent thing on Friday might have been getting the fuck out of
         | the country to celebrate the sale in the midst of an economic
         | downturn. Almost legit?
        
         | resiros wrote:
         | I'm not sure if it was even useful in this case. One day's
         | delay is highly unlikely to have led to the deal failing.
         | Therefore, I don't think this mindset/skillset has anything to
         | do with selling a startup. As a matter of fact, I believe that
         | the CFO was aware that the founder was lying.
        
         | matwood wrote:
         | > lie about reasons to sell
         | 
         | Are you talking about the partnership first strategy? That's
         | pretty standard and how companies get to know each other.
         | 
         | > personal emergencies to deceive and pressure acquirers
         | 
         | There's plenty of gamesmanship during an acquisition -
         | particularly a large company swallowing a small company. The
         | big company can get bogged down, requiring the small company to
         | stay the squeaky wheel to get the deal done. In this case the
         | acquirer could have easily waited until Monday.
        
         | exhibitapp wrote:
         | Maybe it's just me, but I don't exactly consider this lying,
         | with all the negative connotations. It's just applying
         | pressure.
         | 
         | No different than a b2b SaaS salesperson saying they need to
         | close a deal by x date to receive a "special" discount. It's
         | all made up, it's just part of the game
        
         | ensignavenger wrote:
         | How do you know it was a lie? The article never said that they
         | didn't have an urgent personal matter the next day.
         | 
         | The partnership thing was more holding their cards close rather
         | than laying them out on the table. A sell is a form of
         | partnership.
         | 
         | Of course I don't know exactly hat was said or how it was said
         | or the circumstances, but the article does not indicate that
         | either of these things were necessarily lies.
        
         | brudgers wrote:
         | Doing business means dealing with ordinary bullshit.
         | 
         | Enjoying business means being ok dealing with ordinary
         | bullshit.
         | 
         | With the caveat that ordinary bullshit means different things
         | in different contexts. Haggling is ok in the casbah. Not in the
         | Apple Store.
        
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       (page generated 2022-11-23 23:02 UTC)