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What Founders Need to Know: You Were Funded for a Liquidity Event – Start Looking

Steve Blank

While you might be interested in building a company that changes the world, regardless of how long it takes, your investors are interested in funding a company that changes the world so they can have a liquidity event within the life of their fund ~7-10 years. (A You’ve been funded to get to a liquidity event.

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Wow! Are your relationships important!

Berkonomics

Forming business relationships at the highest level As you follow these insights from ignition to liquidity event, you’ll detect a continuing theme, emphasizing the need for deep and wide relationships that the CEO and senior staff can call upon for advice and guidance.

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Why good people leave large tech companies

Steve Blank

The belief then was that most founders couldn’t acquire the HR, finance, sales, and board governance skills rapidly enough to steer the company to a liquidity event, so they hired professional managers. These new CEOs would also act as a brake to temper the founder’s excesses.

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How Do You Want to Spend Your Next 4 Years of Your Life?

Steve Blank

Or is it something that can grow to a size that will result in an acquisition or some liquidity event? Is it a small business that hits $4 million in revenue in four years and $8 million in ten years? You need to decide what your personal goal is and how it matches what you think this business can grow into.

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8 Keys To Maximizing Your New Venture Stock Net Worth

Startup Professionals Musings

Startup owners need to assume a three to five year wait for a liquidity event, such as acquisition or going public, before they can cash out. Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role.

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Turn the tables: What’s an angel look like?

Berkonomics

Angel investors, particularly those in organized angel groups, are typically former entrepreneurs who have had successful liquidity events in their pasts, or executives of companies who’ve retired with the funds from their stock options. Members want to socialize with those who have similar backgrounds and interests.

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10 Startup Founder Decisions That Have No Good Answer

Startup Professionals Musings

If you take investor money, expect a push for hockey-stick growth and a liquidity event, like going public (IPO) or sale (M&A), to get the payback. Transition to a specialist role, plan to exit, be prepared to be pushed out, or plan to fail. The control and growth dilemma.

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