22 Sep 2014
Cautionary tales this week from those who have had their companies acquired.
Acquisition whilst monetarily great for the company owners (and investors) can lead to disillusionment… you started so you wouldn’t have a boss remember!
Most of us would take the cash I’m sure, but with bootstrapping you at least have a choice to design a ‘lifestyle business’ that doesn’t need an out rather than be on the single track to acquisition or death.
@dhh highlights the sunset of Farecast when purchase by Microsoft. And the founder’s laments.
Also worth reading… Mojito island is a mirage
You may remember a great little server hosting company, Slicehost, it was bought by Rackspace.
Around the beginnings of the Web 2.0 era a couple of site sold to Yahoo. One was Flickr which continues on, but missed the explosion of the Smartphone era.
Another was Upcoming, an event directory. Here it’s original founder @waxpancake is running a kickstarter to resurrect it after the Yahoo sunset.
Founder & CEO of Shutterstock, @jonoringer has an interesting tale.
He actually did it. Took a company from nothing to floating on the stock market funded by nothing except his customers. Awesome stuff.
Finally, an article that reminds me why I didn’t like being a founder in VC-world. Here’s an article bemoaning the particular legal, financial vehicle in use for lots of pre-revenue startups.
Favourite/worst sentence in the whole piece…
But do you want to start a relationship with your most important supplier – that of capital to fuel your business – by avoiding talking about his or her expectations in terms of rights or privileges?
It says everything about what troubles me about VC-world. The focus on your “most important supplier of capital”: your investor, not your customers. And that’s why so many ‘startups’ get it wrong.