"Can't he see that?" - my reaction
The other day I watched a show called Shark Tank. It is a show where four venture capitalists have ideas presented to them and if they choose to they invest in an idea that the presenter is selling. It is an interesting show and often there is no deal.
What make this show interesting to me, that day , was a presenter who had been on the show last year and did not make a deal. He was offered a sum of $600k for 51% of the intellectual property(IP) rights of his company which produces a cup of wine products. He has created a method for bottling wine is a glass cup that the big wine companies had not. So his IP was worth a lot but he was also interested in running his company.
This time around he had generated 5 million in sales and was asking for 300k to install a new line. The VCs smelled blood again and went after the IP rights so that the technology could be licensed to other companies and he can make more money.
What was interesting to me was they they offered him money for the IP rights and he chose not to take it. In my opinion he was stuck on the amount offered and the percent of the IP rights that he was giving away. What got in his way was that he was in love with running his business and did not want to sell of much for it. The VCs came from the other side and offered too little for the IP rights. He should have negotiated better and came to a middle ground. I would have offered 25% for just the IP rights for a smaller amount that he needed. The IP rights would have generated more money than he needed for future expansions. He knew that he will have small future successes and did not want to risk those for the payout with which he was not satisfied.
Today's question is:
"Are you willing to give up small future successes for a BIG success that is not guaranteed?"
The other day I watched a show called Shark Tank. It is a show where four venture capitalists have ideas presented to them and if they choose to they invest in an idea that the presenter is selling. It is an interesting show and often there is no deal.
What make this show interesting to me, that day , was a presenter who had been on the show last year and did not make a deal. He was offered a sum of $600k for 51% of the intellectual property(IP) rights of his company which produces a cup of wine products. He has created a method for bottling wine is a glass cup that the big wine companies had not. So his IP was worth a lot but he was also interested in running his company.
This time around he had generated 5 million in sales and was asking for 300k to install a new line. The VCs smelled blood again and went after the IP rights so that the technology could be licensed to other companies and he can make more money.
What was interesting to me was they they offered him money for the IP rights and he chose not to take it. In my opinion he was stuck on the amount offered and the percent of the IP rights that he was giving away. What got in his way was that he was in love with running his business and did not want to sell of much for it. The VCs came from the other side and offered too little for the IP rights. He should have negotiated better and came to a middle ground. I would have offered 25% for just the IP rights for a smaller amount that he needed. The IP rights would have generated more money than he needed for future expansions. He knew that he will have small future successes and did not want to risk those for the payout with which he was not satisfied.
Today's question is:
"Are you willing to give up small future successes for a BIG success that is not guaranteed?"
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