Gurley notes owning 100% of a $20 million exit creates lifetime wealth and attracts more acquirers than larger exits.
“Your boss won't care. If you own a 100% of a $20,000,000 company, that's lifetime wealth.”
Gurley warns founder equity drops from 90% to 10% while market prefers $20-100M exits over billion dollar outcomes.
“And very quickly, almost in a flash before you know it, your founder's equity goes from 90% to 10%. And I've watched it happen over and over and again.”
Gurley argues companies that can't generate $100 million in revenue shouldn't take venture funding.
“I'm the first to argue that if your idea is not something that can generate a $100,000,000 in revenue, you may not want to take venture.”
Gurley calculates that owning 80% of a $30 million exit yields $24 million for the entrepreneur.
“And so if you have a killer product that might elicit a $30,000,000 exit and you can bootstrap and hustle your way and own 80% of it, you know, 80% of 30,000,000 is $24,000,000.”
Gurley calculates that owning eighty percent of a thirty million dollar exit yields twenty-four million for the entrepreneur.
“if you have a killer product that might elicit a $30,000,000 exit and you can bootstrap and hustle your way and own 80% of it, you know, 80% of 30,000,000 is $24,000,000.”