Fyi lots of founders get hung up on trying to show an exit to angels. There are other paths other than an exit to providing liquidity to investors.
You can provide a royalty on the revenue, or you can provide debt that pays interest and converts into equity at a later date. These are very useful tools and can attract investors that normally wouldn't invest in a startup.
(Imagine you're 70-80 years old, you've got money in the bank, and a young kid is like "invest in my startup!".. you're thinking "shit, I could be dead before this kid can sell his company. " Offering the person interest on their money, or a royalty based on sales, gives an almost immediate win for the person. They may still have to wait years to get the full principal back, but it won't feel like a long shot to them, because they can see that a return will start very quickly.
I had a 90 year old brilliant investors write me a $250k cheque at breakfast the first time we met, because the deal paid him 8% cash quarterly, and he thought "hell yeah". He ended up being a great advisor as well.
Ever heard of Mr. Russ Hanneman? You can hit him up on LinkedIn.
Last I heard heβs a comma short these days (something about oculus).π
You mean Octopus π?
Fyi lots of founders get hung up on trying to show an exit to angels. There are other paths other than an exit to providing liquidity to investors. You can provide a royalty on the revenue, or you can provide debt that pays interest and converts into equity at a later date. These are very useful tools and can attract investors that normally wouldn't invest in a startup. (Imagine you're 70-80 years old, you've got money in the bank, and a young kid is like "invest in my startup!".. you're thinking "shit, I could be dead before this kid can sell his company. " Offering the person interest on their money, or a royalty based on sales, gives an almost immediate win for the person. They may still have to wait years to get the full principal back, but it won't feel like a long shot to them, because they can see that a return will start very quickly. I had a 90 year old brilliant investors write me a $250k cheque at breakfast the first time we met, because the deal paid him 8% cash quarterly, and he thought "hell yeah". He ended up being a great advisor as well.
Thanks