As a solo founder, I run a start-up company in the medical space that is doing fairly well. Within 3 years we have 6 figure revenues, and our annual revenues are growing consistently. I am in my early 20's, and I honestly just don't have a strong passion for the space I am in anymore. I have considered selling the company, but I know I wouldn't get as much as I would like if I was to sell now. Recently, I have pushed the idea of selling aside and have been planning out a strategy to grow the start-up more aggressively, however I would definitely need VC/Angel funding to do so. If I was to raise VC/Angel funding, I know I wouldn't want to stay with the company for the next 5-10 years, and would want to cash-out a majority of my shares within 2-3 years if possible (which in the ideal situation would net me more than selling now). My question is, should I attempt to raise money and get this company much larger, if I don't see myself in it for the long-term?

It's a shame you don't feel the fire in the belly for what you're doing but that happens.
Any Angel or small VC is going to want your absolute commitment to stay with the company. They RELY on your fire in the belly to make the company happen. So, there's a real potential conflict there.

Unless you're "In it to win it", I'd avoid an outside investor. That said, would it be possible to find a potential partner that could "buy in" to the company and ultimately take the helm? Even adding a minority partner that does have that fire and then finding an investor would be a better alternative than you have today.

There are ways to structure an agreement with a new partner that would allow you to get paid over time based on the company's success and with an investor (although there's virtually no investor that will want you to use the funds to pay yourself immediately).

Answered 7 years ago

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