Tech IndustryDec 30, 2019
Googleg311

Short-term startup exit for FatFire

Let’s say I don’t want to be an Elon Musk or Mark Zuckerberg. I am not deeply passionate about any shit or I don’t want to change the world. My goal is to find a startup area, be a cofounder, and accumulate around $6-10M from it after 4-5 years, so that I can have a happily semi-retired life afterwards (e.g. spent few months in Europe, few at a beach house etc). It seems like the possible option is use my track record of career and past accomplishments (I have those) to raise some seed money (hopefully $0.5-$1.5M), find a business-minded cofounder with the same goals, hire few code monkeys, and then create a media hype or find some initial customers. Later, target a series A with +$10M valuation, hire more code monkeys and other corporate needs, and then aim for an acquisition by one of the big companies. If the acquisition happens, I can work for them until everything vests, in semi-retired mode. If nobody acquires, I would need to increase the hype and increase the revenue, and try to find a private equity firm to acquire it. Or maybe another excited silicon valley richie richie to take over it and give me cash. How likely are these scenarios? What are your thoughts?

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Microsoft Vbsm66 Dec 30, 2019

You'll need far greater than 10M valuation to accumulate 6M from your startup. You'll own 50% of your company with 1 co-founder, and the seed round will generally take another 10% for every 100K of seed money. That doesn't even include any of the taxes you'll pay when you finally sell. You're far better off just staying at Google and trying to hit L6 or L7.

Google g311 OP Dec 30, 2019

Oh I meant $10M valuation for series A, and then some more hiring and growth and then exit at a valuation close to $30-50M.

Microsoft Vbsm66 Dec 30, 2019

This happens far less than you think. What do you think your chances are for that, compared to just hitting L6 or L7? 6M isn't very much money for this amount of effort, you should be able to save that easily.

New
not-hr Dec 30, 2019

0.0000001%. Good luck.

Google g311 OP Dec 30, 2019

Why?

Cohesity Gb*8#Ja0 Dec 30, 2019

Staying in Google for L6/L7 can never achieve what OP wants :)

Google g311 OP Dec 30, 2019

Yeah agreed. Google stock needs to increase a lot more which seems like a low probability given the recession risks.

Microsoft Vbsm66 Dec 30, 2019

The OP just wants 6-10M net worth. That's really easy at Google.

Apple ⭐️⭐️⭐️⭐️ Dec 30, 2019

Very very unlikely. Even professional VCs have a hard time choosing and they do it professionally. Even if you do exit (which is difficult) the likely hood you’ll make much is extremely low. Plus your hours aren’t going to match. You’re going to be working 24/7 in the beginning without pay. Then you’re going to be working 24/7 earning very little. The founders of coffee meets bagel were reprimanded for taking 100k a year salaries IN SF. And this was after they already raised 3million. You’ll likely make more money just playing the TC game by hopping around FAANG getting bonuses and RSUs.

Google g311 OP Dec 30, 2019

My goal is different than VCs though. They aim for very high returns. My best is that the TC game hopping around FAANG will not be a thing in 2020s.

Google g311 OP Dec 30, 2019

Also I met with many cofounders recently. One major thing I learned is that working 24/7 is a PR bullshit to attract VCs and repel competitors.

Cognizant outing Dec 30, 2019

I think you should totally go for it, I feel like if you create a tool that makes your life easier, then you can probably market it to other devs and companies and get the ball rolling that way. I know a couple of founders, who sold and live semi retired lives with a cushy setup.

Microsoft iamletired Dec 30, 2019

You could probably do this just as easily staying at Google for 5-6 years. Or better, get an offer from FB or Netflix and boost your TC that way. Then in 5 years or so, get a slack job as staff architect at some non-tech F500, work 20 hours a week, and collect your $250k while your portfolio grows.

Uber mr.doge Dec 30, 2019

The chances of a startup surviving for the first 2 years are extremely low (under 1%). To get to the 10MM+ valuation mark and walking away with 5MM+ means you yourself haven't faced any dilution and you own more than half of the company. On top of all that, if you have a company that's worth around 10MM+, chances are your board won't allow you to sell out. Lastly, raising 1MM+ in a seed round is EXTREMELY unlikely unless you're well connected and successful previously in your career.

Uber iijnv Dec 30, 2019

How hard is getting to 10 Million Valuation?