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?
Hey there, I have raised a few rounds myself, got my butt kicked on others, and helped raise over $11MM for other startups.
Raising capital is very hard. It's emotionally draining, and it's a full-time job for awhile - the average round takes over three months. Which means... it's hard to do when you're not passionate about what you're doing.
I might consider this approach:
1) Fine-tune your pitch. Make it incredible! Exciting, passionate, and highlight your growth (I/others can help with this).
2) Then, take that pitch to two different audiences:
2.A) A potential COO/CEO/etc. See what kind of talent you can get to phase yourself out.
2.B) A few investors in your network you trust. Try and get a gauge on how difficult this round of funding will take.
You can use that "data" to help inform your decision.
Last note: some investors might actually be happy to transition you out of the CEO role. Not all, but some.
Hope that helps!
Answered 9 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in