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    Startups What happens to the founder(s) after big tech acquisitions?

    Startups What happens to the founder(s) after big tech acquisitions?


    What happens to the founder(s) after big tech acquisitions?

    Posted: 08 Dec 2019 04:07 PM PST

    So let's say a relatively young solo-founder starts a tech startup, the MVP shows promise so they raise funding, they continue scaling the company, and as things are going fine a year or two into the startup they get a $MMM acquisition offer from a large tech company. So given the founder's equity, they could walk away with $MMM, so they take the deal.

    After it happens, what's next? What do relatively young founders do when they become "overnight" multi-millionaires, do they call their friends and family and throw a party? do they retire? become investors themselves? go on vacations, and or buy garages of exotic sports cars? or is it something completely different.

    I know this is a weird question and no I'm not the 'relatively young solo-founder worth $MMM' in question, but I'm just curious as to what exactly happens when the exit day so many founders dream about finally comes.

    submitted by /u/jb_hand_made
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    Why do most Startups fail?

    Posted: 08 Dec 2019 02:02 PM PST

    Hi there,just wanted to ask you which are the main reasons why most Startups fail. I am new to this world and wanted to understand the high percentage of failure. In my opinion it is because of how many people try to do this without competences,but I really want to know your opinion.

    Thanks

    Ps

    And since I am starting now,can you please tell me where (or how) can I understand more about specific startups things, like: shares(I really don't know how it works),and all the dynamics. I am starting from 0 in the startup world even though I have has an online business

    submitted by /u/andreascorrano21
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    Question: Startup people, how many active email addresses do you use?

    Posted: 08 Dec 2019 12:29 PM PST

    If you've got multiple email addresses, how do you access them? If you change devices, do you have to re-login and sync all the details across devices?

    I'm asking this as I'm actively not making more email addresses for different online domains I own simply because I don't want to have to resync all this data...

    submitted by /u/chddaniel
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    Stock question for a startup

    Posted: 08 Dec 2019 06:54 AM PST

    What should I do?

    I worked for a start up that offered equity to its employees. The start up was sold to a larger company and apparently my stock in the startup was converted to stock in the parent company. Now the startup I worked for was closed down.

    I don't have any info about the stock. What should I do?

    submitted by /u/Corvoxcx
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    Will I be in trouble if I copy another company’s app user interface layout?

    Posted: 08 Dec 2019 07:37 AM PST

    So I am developing an app for iOS and Android app and the user interface layout of it is inspired by a big food delivery company's app. I really liked how the user interface is structured for this company's app.

    If I use the same layout for my app would I get in any legal trouble?

    Our logo and colour would be different. I am based in the UK if that matters and the said company is UK based as well.

    submitted by /u/thundermagicnet
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    Is the investor taking percentage of equity a normal practice ?

    Posted: 08 Dec 2019 06:23 AM PST

    Hey guys, I'm part of a startup made of junior university students, and after about half a year of cold calls, emails and events we finally managed to get to talk to a potential investor.

    We presented costs for MVP, kept 30% equity for founders, offered the angel investor 30% and kept the rest for future VCs, second investor and operation and so on.

    We know he is mostly legitimate from his experience and profile, although we do not know about the startups he's assisted.

    His offer was, he would raise us the amount for 30p%, but the 30% is for him to do as he pleases. He might take 5% and raise the amount for 25%, etc. While we understand that this raises our overall evaluation, we wonder how this might come to bite us in the ass. Nothing is confirmed, and we are all just hinging on heresays and promises, however what are some possible negative implications of this?

    Any advice from experienced people welcome !

    EDIT: Wow guys lots of fantastic advice, didn't expect this much. Summary that I've gotten incase someone else needs a quick brief in a similar conundrum. - 30% is too much for pre seed - 30k$ is too little - Founders deserve higher - Dilution later, over division now - Have some semblance of trust in the individual before you even consider this offer - Consider additional employees and fixed costs we might need before the next seed - Seek legal counsel from region regarding company repurcussions

    submitted by /u/jokertrickington
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    Is the interest I have classed as market fit?

    Posted: 08 Dec 2019 11:25 PM PST

    Hi, I'm wondering about how I qualify the interest I've had in pre launch.

    My business is a software company selling plugins for a major enterprise platform, not your typical saas business. I'm currently focusing on my first product, with ads running for a couple of months to my ecom website, which is in coming soon mode. So far I've gathered 120 subscribers.

    I'm wondering whats a good technique to qualify this interest? Currently I have little clue as to whether these leads are hot and whether I should be engaging with them in a particular way.

    Cheers

    submitted by /u/Ryanisadeveloper
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    How to manage scaling speed, and strategic management?

    Posted: 08 Dec 2019 09:15 PM PST

    Most companies will scale aggressively after pmf to win marketshare, increase economy of scale. Currently Tesla is doing both. Amazon also is aggressively scaling. Would it be reasonable to assume scaling (without putting the company at risk) is always the best option? Always scale until you reach pushback from competitors. The other time to slow down scaling is if it is to focus strategically on another thing to out maneuver the competition?

    When looking at things in this wide lense(competitors, growth opportunity, competitive landscape) how does a company choose which to prioritize, when to scale, when to focus on something else. In other words how does the strategic management process look like?

    submitted by /u/jesus_ismexican
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    Figuring out the revenue model for a startup with low investment

    Posted: 08 Dec 2019 06:31 AM PST

    A startup is about solving a need of a community and iterating over the users and scaling it up. And often times the need of the community is intuitively guessed and an application is built upon the community to understand how the users react and change the model accordingly until a revenue is established.

    This process however depends on the following factors:

    i) intuitively understanding the need often with surveys involving third party services like surveymonkey and likes

    ii) Build a service/model/application for the community , this includes domain and server purchases

    iii) checking the kpi (key performance indicators) with analytics tools and change the model accordingly to establish the revenue

    However all the three processes involves investment before a market is identified.

    My question is that, if they're any other way to create the community and understanding them without involving the above three factors?

    Like, creating a Social media group using Facebook/instagram and then figuring out the market without getting involved with the investment processes?

    Has anyone built their company just by creating a social media community and then slowly iterating over the problem faced by the users in that community and moving in to solve them?

    submitted by /u/souparno2394
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