Tech Industry
8h
989
Question about women in their 30’s?
Tech Industry
9h
926
The man I love hates me because I’m Vietnamese
Software Engineering Career
15h
2671
L4 Google -> 45 interviews, 5 offers, AMA
World Conflicts
19h
390
What will happen with the bullshit antisemitism bill?
Tech Industry
3d
42331
What happens when most of your team is Indian?
I’m a senior software engineer at Google and I founded my tech startup 2 years ago. I’m alone with no employees. I developed the product with no marketing involved and only on 1 platform. The first year I did $200k in sales and the second year more than $500k. The estimation for 2022 is about $750-800k without adding more platforms. All this without expenses (other than paying 15% to the mobile store). I can now expand the product on multiple platforms and also seek investments and hire employees and even start making marketing. The product is under a subscription model and it’s like $1 a month, which means still more potential. The growth is high and every year will be better continuing to work on it. I did all of this as my side job. Now the questions: My startup gained visibility and (I feel weird to say it) I might have 2 potential companies to make an offer to acquire it. I tried to evaluate my company given the revenues with no expenses and the big potential and the even more money that could rapidly make expanding it. Given the info above, if you were in my situation, what would you sell it for? Ps. My net worth is $1.66M as of today. I’m 33. UPDATE: Given the many comments about this: I launched the product before joining Google. I declared the project to Google immediately as was a question in the contract. After joining I also made another request to get another official approval and I got it. Before joining Google I was in another top company that you all know, and they also approved it. Btw thank you very much to all of you. I’m really grateful for all these replies. 🙏🏻 UPDATE 2: People asking why I’m still at Google and do not put myself 100% on my startup. The reason is that I make lot of money at Google. $800k in 2022. UPDATE 3: I had written that the estimated revenue for 2022 was $750-800k. I closed 2022 with $908k in revenue. I’m now making over 100k per month, and in January should be something around 120k. Realistic forecast for 2023 is $1.3M. I’m now about to leave my full time job. Also I would like to thank you for the hundreds if not over 1k private messages I got. I wished I could tell you more and answer everybody. I just can’t get out from the anonymity on this platform, given it is the main purpose. But really, thank you. UPDATE 4: I can’t tell you what’s the app business, otherwise my identity will be uncovered on blind very easily. I put too many details already. Sorry. And thank you for the interest. #startup #acquisition #tech
Quit google focus on startup. U r young rich and stereo adventure will be worth the risk.
Thank you. I thought to that but I’m stuck for the money I make at google and the risk I would take having just one source of income. Having 2 bug sources is great and make me feel free and safe. That’s why if I sell I want to do it for the right price. Thank you!
You already make 500k a year on your startup, why is it not safe? Do you have millions of debt?
Don’t sell it. Continue to build it further
Thank you very much for your thoughts.
Absolutely. Don’t sell it yet
Loon at microaquire or similar marketplaces. Get an idea on ebitda or revenue multiple. You say no expenses but you have been working on it, so add yourself as an headcount as a part time employee. This will reduce your valuation but it is more realistic. Also why are you selling? Why dont you be ome the founder and make it bigger ?
You are right. In one case there would be a Vice President offer attached. I’m also very tired. I spent the last 8 years focused on work, career etc. And I feel I’m very tired and building the company more alone while I keep another full time job it’s devastating. I’m going to do it yes, but you know, with an opportunity to sell for a good price I’m thinking about it. Thank you man.
Product market fit is hard. You may not get another one. I would hire somebody and keep my time spent to a minimum, grow the revenue and sell later. There is always more growth especially if you havent done marketing. Hire some people and dont micro manage it
$5M without you, $10M with you for 5 years
Thank you for your thoughts. I had thought that for 10M I would accept. Although my estimation is 15-19M. But 5M I would have to think because I can make those money with my company in 3-4 years or less if I seek investment and I go bigger.
What are you smoking
Typical valuation are 7X
Thank you. I have seen also 26x. I already know for sure that the company will make 750-800k next year. Using 7x now would mean 3.7M. And I will make those money in probably 2-3 years. Not enough for me I believe. Where this 7x comes out from? Thank you.
The startup I worked for was acquired at 5x revenue but it was stagnant. If your company is in growth phase it could command more. Tough to say without knowing details. Most founders overestimate potential. 26x semms like you're dreaming. Talk to a broker like FE International. They'll give you a reasonable range you can expect.
Teach me senpai
Ahahah you Made me laugh a lot thanks 😂
Notice me senpai
Go pitch it on sharktank
😂
10-15x earnings; revenue for companies that don’t make money where costs > revenue.
Thank you! 15x earnings would mean 6.1M. It’s ok but still something I can make with the next 4-5 years without much effort. Would you still sell it?
Would be 800k *(1-15%)*15 — you said you had no other cost than the 15% fee?
Pics or it’s fake
I tell you something. To reach this point of my life I worked like crazy and my life and family was also affected by that. However you can take it as an inspiration. Writing this you are just telling yourself that you can’t make it. Nothing change for me if you believe to my story or not. But I’m in a big indecision at the moment and I need other opinions. Don’t be bad. Blind is good also for this. It tells us what it’s possible. Not all great and rare stories are fake my friend. Good night.
This story is neither great nor rare. We just need proof before we can proceed with real advice