Slide’s recent exit (bought by Google) has few lessons for start-ups
- Don’t start a company with a sole intension of being sold. Focus on building something which can be self-sufficient in a reasonable amount of time. This will provide lot more options for share holders (investors, employees & founders) to make an happy exit.
- Don’t build revenue models depend on online ads. This market is dominated by few large players and only exit is to get bought-out by one of them. Chances of becoming the next facebook is next to impossible. Even facebook will have lot of issues generating revenues based on online ads and scale-up their operations.
- Plan B & C is a good idea while a start-up refines the business model. In this process if you have crossed Plan F, that is a good sign of a failing venture.
- Those days are mostly gone when start-ups with no real revenue models were bought out by large players. Revenue traction is the good validation for any business model to do a large acquisition. It has not been a major criteria past few years for VCs investing during pre-revenue stage. But things have changed with there as well.