What firsthand experience taught you the hard way of why exit plans are necessary? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
by Touraj Parang, Silicon Valley dealmaker, President and COO at Serve Robotics, which was spun out of Uber and author of “Exit Path: How to Win the Startup End Game”
In January of 2009, amidst a historic global financial crisis, I had to find a way to sell Jaxtr, a social communication startup I had co-founded 3 years prior. We only had six months of runway in the bank at that point. In the prior 3 years, we had raised nearly $20 million from top-tier Silicon Valley investors and our product had won numerous awards. And we had rapidly registered over 10 million users. As a result of which we had made the decision not to distract ourselves with pursuing strategic partnerships or building relationships with potential acquirers and instead opted to keep our heads down and execute. We thought we were well on our way to an IPO as a billion dollar startup, so why should we distract ourselves?
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