It's not What We Own - It's Whether It's Liquid
Update: 2021-07-26
Description
In today’s Startup Therapy Podcast, Wil and Ryan talk about liquidation probability. Many Startup founders make the wrong decision to lose interest in what they currently have and start pursuing something else in the hopes of a much bigger outcome, completely skipping the part where they first have to gauge the probability of success.
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Resources:
Startup Therapy Podcast- https://www.startups.com/begin
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What to Listen For
- 00:00 Intro
- 00:13 You should be more concerned about what you don’t own
- 05:40 The probability of liquidity is so low
- 09:06 The probability of your Startup getting liquidated and then liquidating the next
- 12:52 Important numbers: probability, equity that you own, and the value of equity
- 17:30 When the money you sold for is sitting on a preference
- 20:02 Probability should change the likelihood that you would sell
- 22:55 Always go with probabilities over percentage
- 26:57 We give up what we have and latch onto something with low probability
- 32:56 You only have so many years of peak earning potential
Comments
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