What’s the best way to sell your company?

Paul Graham (Co-Founder & Partner at Y Combinator)
Don’t Talk to Corp Dev

Before agreeing to meet with someone from corp dev, ask yourselves, “Do we want to sell the company right now?” And if the answer is no, tell them “Sorry, but we’re focusing on growing the company. ” They won’t be offended.

What’s the best way to sell your company?

Paul Graham (Co-Founder & Partner at Y Combinator)
Don’t Talk to Corp Dev

Distractions are the thing you can least afford in a startup. One of the tricks to surviving a grueling process is not to stop and think how tired you are. Instead you get into a sort of flow. Imagine what it would do to you if at mile 20 of a marathon, someone ran up beside you and said “You must feel really tired. Would you like to stop and take a rest?” Conversations with corp dev are like that but worse, because the suggestion of stopping get… (read more)

What’s the best way to sell your company?

Paul Graham (Co-Founder & Partner at Y Combinator)
Don’t Talk to Corp Dev

Corp dev people’s whole job is to buy companies, and they don’t even get to choose which. The only way their performance is measured is by how cheaply they can buy you, and the more ambitious ones will stop at nothing to achieve that. For example, they’ll almost always start with a lowball offer, just to see if you’ll take it. Even if you don’t, a low initial offer will demoralize you and make you easier to manipulate.

What’s the best way to respond to a VC partner?

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

Even if you get an email from a partner you should try to delay meeting till you’re in fundraising mode. They may say they just want to meet and chat, but investors never just want to meet and chat. What if they like you? What if they start to talk about giving you money? Will you be able to resist having that conversation? Unless you’re experienced enough at fundraising to have a casual conversation with investors that stays casual, it’s safer t… (read more)

What’s the best way to raise your seed round?

Paul Graham (Co-Founder & Partner at Y Combinator)
High Resolution Fundraising

The reason startups have been using more convertible notes in angel rounds is that they make deals close faster. By making it easier for startups to give different prices to different investors, they help them break the sort of deadlock that happens when investors all wait to see who else is going to invest.

What’s the best way to raise the right amount of money?

Paul Graham (Co-Founder & Partner at Y Combinator)
How to Raise Money

If you’re so fortunate as to have to think about the upper limit on what you should raise, a good rule of thumb is to multiply the number of people you want to hire times $15k times 18 months. In most startups, nearly all the costs are a function of the number of people, and $15k per month is the conventional total cost (including benefits and even office space) per person. $15k per month is high, so don’t actually spend that much.