We are living in an interesting time where most startups don’t succeed though those that do, especially in the tech industry, produce big returns for the Founders – many of which aren’t used to having $1M in their pocket let alone $100M out of nowhere once an acquisition occurs. This blog post is focused on what to do as an entrepreneur and now an investor once such a liquidity event occurs.
First and foremost, it’s important to note that many successful entrepreneurs inherently become serial entrepreneurs in the sense that once they see a big win/exit it only makes sense to continue down that path launching new companies and investing in them, however there’s also an element of preserving your wealth (that initial win) so you can continue on the same entrepreneurial path while also securing your safety/success in the future via other investments.
Secondly, that’s where bringing in an experienced financial consultant/firm can make or break things, and really get your mind on the right path. For example, even though Michael Jordan is one of the greatest basketball players to dribble this earth he still had a head coach, and many of the most successful people in the world in their respective fields have achieved such because they’re open and willing to listen and learn from others.
Looking at the startup/tech space in particular, companies are being acquired left and right, and Founders as well as early investors that realize big returns need to be strategic in what they do with the returns.
Have a startup company that’s exploring an exit and don’t know what to do next? Let’s connect and brainstorm.