Brief thoughts as co-founder of acquired Fanvibe (YCS10)
artchang.com
artchang.com
To me, 'startups' are not really companies. They are vehicles for speculative activity by a certain class of people. All those drones being encouraged into spending so much time working in these companies so that investors will make money could also work on creating real businesses that they own and that will make them real money.
The point of starting a business is to grow and maintain something.
In being acquired, the founders are exchanging a potentially long-term successful business for near-term security and presumably good money. Perhaps the founders wanted to spend more time on their product and less time on their business...Different people have different motivations, and money is by no means the only determining factor of whether one is a "real winner".
I know nothing about Fanvibe's acquisition, but typically in these cases it's the "dudes" who control the business and they're selling it because they want to, because it's making them a life-changing amount of money.
Meanwhile the investors make a small return but lose the chance of a big return, which is what they really need in order to succeed at startup investing. Good investors support the founders anyway, because they know it's not in their interest to thwart them and also because they are often nice people who are happy to see the "dudes" succeed.
On the other hand, these guys are making perhaps $300k each, which they can easily make as highly capable consultants. And they end up with nothing much after that, just the chance to work even more.
The problem is not venture capitalists, it's those "brand name" investors who are putting $20k in many many companies.
If what you're saying is true, then founders in general (who leap at the chance to take these deals) are dupes. That doesn't seem very likely.
"Remember that your mind is a fortress of impenetrable happiness."
Common words of wisdom that never seem to be taken to heart nearly enough. Reminded me of another gem from Daniel Gross of Greplin:
"It’s very important to constantly tell yourself if anything, how lucky you are to be here in the first place. Even if you aren’t in the valley, remember how lucky you are to live in the 21st century."
Congrats Art! Thanks for showing us what fortresses can do ;)
I've been doing research in the space(s) of sports & gaming, particularly in-game predictions, which I think can be super compelling in the right context. While I wasn't that enthralled with other aspects of the product, I.E. checking in to games (why, when I can just use a location-based service?), trash talking with other fans (can do that via social media, along with team-centric blogs/forums) etc, it seemed like Fanvibe was ahead of the curve with this in-game prediction element; at least from a non-gambling perspective.
Just curious what their thoughts were on this.
And I have to say, I've rarely seen a post about being acquired that sounded so happy about it. Really seems like you'll enjoy working at beRecruited, so best of luck to you!