article thumbnail

Knowing When It’s Time To Sell Your Startup

YoungUpstarts

A volatile stock market and economic recession have since changed much of this thinking. However, they have failed to generate profits and the stock has since sunk to less than $3 per share. Questionable business model. The deal closed only four months later in August of 2012. The current market cap is only $1.8

IPO 162
article thumbnail

Are You Selling Your Company? Be Careful with Financial Buyers!

Scott Edward Walker

Financial buyers are investors that are interested in a return on their investment business – which is the business of buying and selling companies. Instead of investing in the stock market or in startups (e.g., How Is the Deal Structure Different with a Financial Buyer?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Instead of giving me a valuation that I now have to negotiate, why not just issue me debt and let me buy stock at the seed round valuation (maybe with a risk premium) with that debt. If I can copy your business by just looking around, then your company isn’t going anywhere anyway. You don’t have a defensible business model.

article thumbnail

Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

Stock Market In my Junior year in college, I started day trading and grew a $2,000 pot to over $40,000 thanks to a big one-hit wonder. I am not a guru in stock trading. For example, my dad wouldn’t touch stocks because he doesn’t understand them. In fact I don’t care to be. The arbitrage simply works.