As a solo founder, I run a start-up company in the medical space that is doing fairly well. Within 3 years we have 6 figure revenues, and our annual revenues are growing consistently. I am in my early 20's, and I honestly just don't have a strong passion for the space I am in anymore. I have considered selling the company, but I know I wouldn't get as much as I would like if I was to sell now. Recently, I have pushed the idea of selling aside and have been planning out a strategy to grow the start-up more aggressively, however I would definitely need VC/Angel funding to do so. If I was to raise VC/Angel funding, I know I wouldn't want to stay with the company for the next 5-10 years, and would want to cash-out a majority of my shares within 2-3 years if possible (which in the ideal situation would net me more than selling now). My question is, should I attempt to raise money and get this company much larger, if I don't see myself in it for the long-term?
The most important factor is to find a financial partner or investor who shares your objectives. There are VCs that are not afraid of management changes and who are seeking 2 to 4 year exits. The key is how you find your investor and the deal you set with them.
Another alternative is to find and groom a CEO to grow the company and hand over the reigns before seeking the funding. This way you position yourself more as a Chariman or non-executive director and can possibly have your cake and eat it,too.
Answered 9 years ago
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