Do you know anything about business?
I'm in a situation where I've returned from few pitching events and got follow ups from VCs, the point is, they want to invest (what seems to me) a lot of money, considering it is a start up. So I've got infrastructure from my partnership with another company, that also provides my developers and part of the management. So on top of this, we're running test marketing soon and looking to pass a million euros in revenue within the next 9 months. Most of it will be sucked by product development though.
The point is... as the founder, owner and CEO, I think I should step down from the CEO position and be more of a founder and management, because I do dig operational side of it. The point is, it is still a hot start up, and basically I can't afford all that VC money. The company is not for sale (until it reaches Godless amounts of value), and I don't want to give up control, as this business is based on high substance and knowledge.
This is what I'm thinking: I should get a new CEO who is a superstar with start ups, let that person run for a year or two until we reach our potential globally, or then we don't succeed and that's it. Given it succeeds, I'll just change the accelerator team into a more experienced CEO and pay bigger points. In two years time, given that we reach the first million in some months, projection is pretty good so THEN we could accept VC money in and keep the control regardless.
What do you think? When is it the right time to get VC money in? How much is needed? We can gather up to one million more from angels and ourselves, but we're looking to hire up to 20 people before the end Q1 in 2010.
As you can see, I don't know much about these things, I do know about the product and the service though. Business? I have no clue. You? What should I do? For example, I've been invited to a multinational next week to discuss what they'd like to do (they want a part of it), and I'm sort of not feeling it. They've got money but they don't have the mindset for this venture, and I think they might also lack in the fortitude of the testicular side as well.
I'm in a situation where I've returned from few pitching events and got follow ups from VCs, the point is, they want to invest (what seems to me) a lot of money, considering it is a start up. So I've got infrastructure from my partnership with another company, that also provides my developers and part of the management. So on top of this, we're running test marketing soon and looking to pass a million euros in revenue within the next 9 months. Most of it will be sucked by product development though.
The point is... as the founder, owner and CEO, I think I should step down from the CEO position and be more of a founder and management, because I do dig operational side of it. The point is, it is still a hot start up, and basically I can't afford all that VC money. The company is not for sale (until it reaches Godless amounts of value), and I don't want to give up control, as this business is based on high substance and knowledge.
This is what I'm thinking: I should get a new CEO who is a superstar with start ups, let that person run for a year or two until we reach our potential globally, or then we don't succeed and that's it. Given it succeeds, I'll just change the accelerator team into a more experienced CEO and pay bigger points. In two years time, given that we reach the first million in some months, projection is pretty good so THEN we could accept VC money in and keep the control regardless.
What do you think? When is it the right time to get VC money in? How much is needed? We can gather up to one million more from angels and ourselves, but we're looking to hire up to 20 people before the end Q1 in 2010.
As you can see, I don't know much about these things, I do know about the product and the service though. Business? I have no clue. You? What should I do? For example, I've been invited to a multinational next week to discuss what they'd like to do (they want a part of it), and I'm sort of not feeling it. They've got money but they don't have the mindset for this venture, and I think they might also lack in the fortitude of the testicular side as well.
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