My previous post discusses some of the reasons the best and brightest are leaving big companies to work in startups. One factor is that the employees in the world’s greatest software, chip and networking companies haven’t earned any significant wealth from options for over a decade. The result is that many of the most valuable employees have been choosing to work in startups where there is a better opportunity to do innovative work and make possib...
Companies certainly have cultures.
They also seem to have DNA. Corporate DNA is formed early on in a corporation's life-cycle. But unlike most living creatures, a company's DNA can change later in life.
Corporate DNA, like all other DNA, determines, to a large extent, the characteristics and success of the organism.
Flaws in the DNA can lead to infant mortality, or failure modes, that might not be apparent for many years.
When investors, o...
Most entrepreneurs wait too long to start thinking about their exit.
They usually sell their companies for much less than they could have. The valuation curve, and return to shareholders, usually ends up looking something like this.
Most entrepreneurs don’t even know that a VC is likely to block an exit when they accept the VC’s money. I didn’t when I started out —and neither did my friend who I describe in "Why VCs Block Good Exits".
In my first company it wasn’t until the final extraordinary general meeting, when the shareholders were voting to approve the exit transaction, that I actually reali...
The main thesis of my book Early Exits is that entrepreneurs and angel investors would make more money, and have more fun, if they built companies around a strategy of early exits.
In "Early Exits" show that most M&A transactions are under $30 million. More recentl...
Highlights of Early Exits - Your Golden Opportunity - Part 3:
There is lots of venture capital available today. Why entrepreneurs need an exit strategy before they contact the first investors. Check the compatibility of the DNA before you add investors to your organization.
Why your exit strategy is the most important element in your business plan. The exit is j...