Our portfolio company Suite101.com announced today that it has launched French and Spanish versions of…
Entrepreneurship
Few decisions can be as life-changing for founders as deciding when to sell a business. Companies get sold for a whole host of reasons: founders break up; money runs out; shareholders force a sale. And in many cases, the financial upside of a sale is just too seducing for the entrepreneurs, particularly for first-time founders. […]
Our portfolio company Suite101.com announced today that it has launched French and Spanish versions of…
Last week we brought together over 20 founders, CEO's and senior managers from 6 portfolio…
Few decisions can be as life-changing for founders as deciding when to sell a business. Companies get sold for a whole host of reasons: founders break up; money runs out; shareholders force a sale. And in many cases, the financial upside of a sale is just too seducing for the entrepreneurs, particularly for first-time founders.
When making such a major decision, you’ll undoubtedly need to weigh many factors and most likely, some competing interests. However, I think the most compelling reason to sell is when the founders run out of ideas for how to grow the company further.
Speaking from personal experience, this was the driving force behind our decision to sell AbeBooks (a marketplace for used, rare, and hard-to-find books) to Amazon back in 2008.
At the time, AbeBooks was still a nicely growing and highly profitable business, but we didn’t know how we could turn it into a billion dollar company. At the same time, the business could provide a lot of strategic value for many players in the book business, namely Amazon. So we decided to sell.
Looking back, there were several factors limiting our ability to grow, including:
Most importantly, we felt that we had optimized our business model to extract as much value out of the marketplace as we could. In short, we were struggling to think of ways to grow the company beyond modest increments.
For some founders, external factors and financial pressures may be too strong to avoid selling. But if you have a choice, don’t think about selling your company until you run out of ideas for how to grow it. Hopefully, that time will be far down the road.
Portfolio
Robotics has been a core focus of my time in deep tech. I recently wrote a post sharing our considerations on robotics and we’ve made three investments in the category within the past year, including Optimotive. Today, I am thrilled to be able to share the news that we’ve led the $5m seed round of […]
There’s a talent drain facing the tech industry today. We frequently hear about companies that…
We are very happy to announce our investment in Manifold, the easiest way to find…