The idea is to build the company to a certain size, and then sell it
someone bigger. We have some great opportunities to sell to places like
IBM or Salesforce in the next 1-2 years. We would try and make it an all
cash deal, and that's when we collect our money... (and then get to pay
30% toward taxes).
Travis
On 4/6/2016 5:59 PM, CBB - Jay Fuller wrote:
Who pays you that 1.5 million? Some new investor coming in.
Certainly not the company itself ?
----- Original Message -----
*From:* Ken Hohhof <mailto:af...@kwisp.com>
*To:* af@afmug.com <mailto:af@afmug.com>
*Sent:* Wednesday, April 06, 2016 4:35 PM
*Subject:* Re: [AFMUG] Taking some off the table
You're 27 months in and your $100K is now worth $1.5M? I would
definitely
take at least $100K out. Maybe take out $200K and invest half of
it in a
new startup.
That way you're a winner no matter what happens.
Your tax situation might affect the decision one way or the
other. And if
things keep going this way, you will be setting up a charitable
trust like
Bill and Melinda Gates or Warren Buffet, because you don't know
what to do
with all your billions.
-----Original Message-----
From: Travis Johnson
Sent: Wednesday, April 06, 2016 3:46 PM
To: af@afmug.com <mailto:af@afmug.com>
Subject: [AFMUG] Taking some off the table
Hi,
I'd love to hear some thoughts about when is a good time to take some
money off the table. I know this is a very diverse group and sometimes
the insight here is something you can't get anywhere else. LOL
I invested in a startup company 27 months ago. When I invested, the
company was valued at $1M and I owned 10%. Over the course of
time, the
company has taken a few other investments along the way, so I now own
8.27%. The company is now valued at $18M and several private equity
funds have contacted the CEO about buying "secondary" shares of the
company. So, I have the option to "take some off the table".
The company is growing amazingly fast... we just received an offer
from
one of the top investment companies in the country that they would
invest up to $25M right now.
So, the question is: When is a good time to sell some shares (even
just
to get the original investment back)??
Travis
