Comments on: Honey, I Shrunk the Startups, Part II http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html Redfin Corporate Blog Fri, 10 Feb 2012 02:35:37 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Our Bookmarks: Oct 5 - Oct 11, 2009 http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-12757 Our Bookmarks: Oct 5 - Oct 11, 2009 Thu, 20 Oct 2011 12:33:08 +0000 http://blog.redfin.com/?p=1706#comment-12757 [...] Honey I Shrunk The Startups by Redfin Corporate Blog [...] [...] Honey I Shrunk The Startups by Redfin Corporate Blog [...]

]]> By: How Much Would Mint Be Worth Now? | Redfin Corporate Blog http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-11382 How Much Would Mint Be Worth Now? | Redfin Corporate Blog Mon, 21 Feb 2011 16:21:07 +0000 http://blog.redfin.com/?p=1706#comment-11382 [...] so long ago that we can hardly remember how vigorously venture investors defended the deal, even as Redfin and Jason Fried suggested that Mint would have been fine going it alone, [...] [...] so long ago that we can hardly remember how vigorously venture investors defended the deal, even as Redfin and Jason Fried suggested that Mint would have been fine going it alone, [...]

]]> By: What the Government Could Really Do to Support Entrepreneurs | Redfin Corporate Blog http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-9016 What the Government Could Really Do to Support Entrepreneurs | Redfin Corporate Blog Wed, 09 Jun 2010 12:16:48 +0000 http://blog.redfin.com/?p=1706#comment-9016 [...] Even if Friedman is talking about lifting Sarbanes-Oxley requirements for companies in their first few years as a publicly traded stock, I think he is missing the point. As we’ve argued before, the reason for the dearth of IPOs hasn’t been due to Sarbanes-Oxley laws but because, a few years ago, so few startups were generating consistent profits, and so few entrepreneurs were interested in the long haul. [...] [...] Even if Friedman is talking about lifting Sarbanes-Oxley requirements for companies in their first few years as a publicly traded stock, I think he is missing the point. As we’ve argued before, the reason for the dearth of IPOs hasn’t been due to Sarbanes-Oxley laws but because, a few years ago, so few startups were generating consistent profits, and so few entrepreneurs were interested in the long haul. [...]

]]> By: Paul Friedman http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-8479 Paul Friedman Thu, 13 May 2010 20:49:09 +0000 http://blog.redfin.com/?p=1706#comment-8479 For me (as someone who has been part of 3 startups that were sold), it's all about balancing the rational with the emotional. On the rational side, a measured decision should look at the economic risk/reward tradeoffs when deciding to sell a company. Included in this are both factors around the company (P/R ratios, etc.) as well as personal factors (risk tolerance, wealth needs, etc.) On the emotional side, I think you've captured it perfectly, with the exception of considering the employees. When the founders/executives make major decisions for the company, they need to keep in mind that this decision affects everyone, not just themselves. Truly, one of the sacred duties of a founder/executive is to put the well-being of their employees above their own self. When a 'significant liquidity event' comes along, if the founder/executive passes on it, they are doing so for others as well. ---Paul For me (as someone who has been part of 3 startups that were sold), it’s all about balancing the rational with the emotional.

On the rational side, a measured decision should look at the economic risk/reward tradeoffs when deciding to sell a company. Included in this are both factors around the company (P/R ratios, etc.) as well as personal factors (risk tolerance, wealth needs, etc.)

On the emotional side, I think you’ve captured it perfectly, with the exception of considering the employees. When the founders/executives make major decisions for the company, they need to keep in mind that this decision affects everyone, not just themselves. Truly, one of the sacred duties of a founder/executive is to put the well-being of their employees above their own self. When a ‘significant liquidity event’ comes along, if the founder/executive passes on it, they are doing so for others as well.

—Paul

]]> By: The Best Blog Post I’ve Read in a Long Time | Redfin Corporate Blog http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-8473 The Best Blog Post I’ve Read in a Long Time | Redfin Corporate Blog Thu, 13 May 2010 16:58:05 +0000 http://blog.redfin.com/?p=1706#comment-8473 [...] am not here to say that selling early is a bad choice. It depends on the entrepreneur and, especially, on the company. And I’m not here to say that [...] [...] am not here to say that selling early is a bad choice. It depends on the entrepreneur and, especially, on the company. And I’m not here to say that [...]

]]> By: Startup to IPO: Why Few Companies Make the Leap and What We Can Learn from Them (Part 4: Differentiation & Marketing) http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-7806 Startup to IPO: Why Few Companies Make the Leap and What We Can Learn from Them (Part 4: Differentiation & Marketing) Tue, 16 Mar 2010 06:57:39 +0000 http://blog.redfin.com/?p=1706#comment-7806 [...] “Telling young entrepreneurs that they’re not ready to be a Jedi yet, just because they’re young” is simply wrong. Fight on to victory! [...] [...] “Telling young entrepreneurs that they’re not ready to be a Jedi yet, just because they’re young” is simply wrong. Fight on to victory! [...]

]]> By: Private/Public Company Too Polar, Need a New Option « Elia Insider http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-6639 Private/Public Company Too Polar, Need a New Option « Elia Insider Tue, 20 Oct 2009 14:18:49 +0000 http://blog.redfin.com/?p=1706#comment-6639 [...] Private/Public Company Too Polar, Need a New Option There was a great spitting contest a few weeks ago that I greatly enjoyed. It went something like this: a company named Mint, a web-based personal financial manager a la Quicken, was purchased by Intuit for $170 million. Jason Fried, a well-known bootstrap proponent who runs 37 Signals, said that it’s too bad that the investors would force Mint to sell as here was a chance for a lasting brand. A few people then shot back calling Jason bad names and saying there was no way the investors forced Mint to sell, which is true (straight from the mouth of one of the lead investors). (read here and then here) [...] [...] Private/Public Company Too Polar, Need a New Option There was a great spitting contest a few weeks ago that I greatly enjoyed. It went something like this: a company named Mint, a web-based personal financial manager a la Quicken, was purchased by Intuit for $170 million. Jason Fried, a well-known bootstrap proponent who runs 37 Signals, said that it’s too bad that the investors would force Mint to sell as here was a chance for a lasting brand. A few people then shot back calling Jason bad names and saying there was no way the investors forced Mint to sell, which is true (straight from the mouth of one of the lead investors). (read here and then here) [...]

]]> By: Startup to IPO: Why Few Companies Make the Leap and What We Can Learn from Them (Part 4: Differentiation & Marketing) » Power of Scale http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-6599 Startup to IPO: Why Few Companies Make the Leap and What We Can Learn from Them (Part 4: Differentiation & Marketing) » Power of Scale Wed, 07 Oct 2009 06:52:13 +0000 http://blog.redfin.com/?p=1706#comment-6599 [...] “Telling young entrepreneurs that they’re not ready to be a Jedi yet, just because they’re young” is simply wrong. Fight on to victory! [...] [...] “Telling young entrepreneurs that they’re not ready to be a Jedi yet, just because they’re young” is simply wrong. Fight on to victory! [...]

]]> By: dave mcclure http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-6597 dave mcclure Tue, 06 Oct 2009 20:07:57 +0000 http://blog.redfin.com/?p=1706#comment-6597 actually, several of my friends are cancerous VCs...(cough) actually, several of my friends are cancerous VCs…(cough)

]]> By: Glenn Kelman http://blog.redfin.com/blog/2009/10/honey_i_shrunk_the_startups_part_ii.html/comment-page-1#comment-6595 Glenn Kelman Tue, 06 Oct 2009 16:19:42 +0000 http://blog.redfin.com/?p=1706#comment-6595 PS, I think "cancer" is a strong word and you have a right to be pretty mad about that. PS, I think “cancer” is a strong word and you have a right to be pretty mad about that.

]]>