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Ask HN: Is Slowing Down Failed Startups Possible?

7 pointsby Gtex555almost 3 years ago
I have heard it said that sometimes great ideas are killed by start-up culture i.e. pressuring it to grow too quickly and take risks in hopes of 100x-ing the investment. Is it not possible to take these failed startups and turn them into small profitable businesses without the start-up pressures.

2 comments

cl42almost 3 years ago
Yes, 100%.<p>I can&#x27;t name companies specifically, but I know a few where VC-backed startups ended up buying out their VCs and bootstrapped their way to a modest success. The reasoning was simple: VC invested a Seed or Series A, 5 years later the company is breaking even and clearly won&#x27;t return money to the investor, so the investor wants to cut their losses and stop &quot;wasting&quot; their time. VCs are on a fixed time horizon so they <i>want</i> to get out after 7-ish years.<p>One really cool case was the employees (rather than the founders!) actually put in a bid to buy the company and clean up the cap table.<p>These companies were big enough to merit the attention of their founders&#x2F;employees but not the attention of VCs looking for a 50x return.<p>These situations are very rare, however. To your point about startup <i>culture</i>, if the culture itself is focused on bleeding money and growing to a unicorn at all costs, then I don&#x27;t think anyone would want to go through the processes above.
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peytonalmost 3 years ago
Acquisition