A Flip/Flop Bubble of Microventures?
Ross Mayfield has a great little article about flipping micro ventures A Flip/Flop Bubble of Microventures?. By this he means creating micro ventures for the sole purpose of selling it to some large company like Google.
I am a big believer in developing a company with the goal of making it as great as can be, with an eye on exit in public markets. I look M&A exits as options along the way. The problem is when you build to flip, you may be focused, but short sighted. Essentially, you loose IPO as the exit option and M&A opportunities you can’t foresee.
Which is really the whole idea of bootstrapping, you are focused on building a solid business from day one.
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Jeff Clavier, an experienced business man and angel investor chimes in agreeing with Ross Mayfield: I would venture that you can't build a company solely with the express intent to flip it, because you can never plan where your potential
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You are exactly right. That is what bootstrapping is all about. It’s also important not to confuse building to flip with selling early. The term "build to flip" has a very negative connotation. We attempt to clarify the difference in our post on this...
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