Why Founders Sold Startups?

by GDP Venture
BUsiness plan startups

Build a startup is not an easy task and there is a time when founder must take decision between keeping or selling the company. Not all founders have mindset of building just one company. Many of them, have thinking “When I should sell my business?”

Here are the most popular opinions why founders sold startups:

1. They had enough of it

At early stage startup founder takes less risk because they don’t have much value in their company to lose. But after a while, the company will grow and so does the value. It will make decision making harder time to time because founder will face greater risks to lose some company value if they didn’t take wise decision. Think about doing it for a long time. Founder will accumulate a lot of stress and pressure and it is natural if they had enough of it and want to retire.  Some of them just want to retire, while most of them want a new journey.

2. Want to leverage the business

When founders decided to sell his company to a larger company, not just the money they will get. Better market opportunities, better business network, and better technology support are some of the good thing that usually will come with it. For acquirers, some benefit can be gained is can leverage the new team, service, product and market it big so that they can make 10X or 100X of profit.

3. Saving the company

When you sold something, it means you will get money. In worst case scenario, if the amount meet the necessity, for a small company that was in collapse situation it will be the life safer. With the money, the company will have another fuel to keep going on in the market and build more innovative solution-whether it with pivot, hire more talented employee or any good opportunities that can come. For the acquirers, often it can open more business benefits.

 

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