I’ve recently had a few conversations with different founders about the companies they are building. Thinking about it, I found I could separate them into two groups (like most other things): those who are building a business and those who are looking to exit quickly.
In today’s market, many startups with zero or very few sales can be sold for tens of millions just for their technology. In many cases their technology really is amazing, while in some cases you find yourself questioning the acquirer’s decision. It’s interesting to see, that even (or some would say, because of) today’s market, people still build companies with the goal of selling them quickly.
Others, focus on building businesses. They want to get to their first $1M ARR, then $10M, then $100M, then $1B, etc. They see a gap in the market that they know they can fill and want to do it for every single possible customer out there. They are building a real business.
From my tone you can see what I prefer to be building. I don’t really understand the concept of building a company for selling it as quickly as possible. You’ve quit your job, you are putting yourself (and possibly a family) through a roller coaster and you’re doing it for what? To make a few millions and do it again? Are you really going to feel self-fulfillment selling your company to some large corporate, who will most probably mishandle the acquisition and kill your vision?
Don’t get me wrong – making millions is important. But you can achieve that on your way to the $1B ARR. Why not focus on building a real business, that will delight customers around the world and have them coming back again and again?
I’ve made my choice when I started indeni: every single enterprise on the planet should be relying on indeni to run their IT and that’s where we’re headed.
What’s your choice?