10.13am. I know my calendar is a bit off now, and I’m not writing with the regularity I wanted… but yesterday was a write off for me based on the night prior.
Before I go on, I think it’s a good idea to give my early stage investors/ advisors names… as it will help you make sense of the story.
So here goes –
- Martin Landau – Elder, grey haired, wiley, no b/s investor.
- Hamptons Bill – Our most hands on investor. Questions everything. Clean cut. Everything is ‘swell.’
- Jeffrey – Highly respected in our field. He’s like the father you ask permission to marry his daughter. Astute, but can never get his time.
- Karen – Rock star investor. She’s supportive and tell’s me to do what I want.
- Eddie Vedder – Advisor in LA (not THE Eddie Vedder)
Might add to this list over time.
Anyway, so the night before last, I rang an advisor friend – Eddie Vedder in LA to get his sense on what our valuation might be.
Eddie – “Well dude, I mean what are they paying for, what are they buying? If this company doesn’t acquire it, who else will?”
John Startup ”Well eh….”
Eddie – “How much money have you made with it so far?”
John Startup – “Well nothing”
Eddie – “If this company are interested in acquiring I would do anything to make it happen.”
John Startup – “Hamptons Bill is saying 5-10 million.”
Eddie – “That’s ridiculous where is he getting that from?”
John Startup – “Well eh….”
Eddie – “This is your big bro talking. Take something lower. Put some money in your pocket… and take an executive job with them. You’ll be on a big salary.”
John Startup – “Ok, so your saying 3/4 or 5?”
Eddie – “It’s complicated man”.
John Startup – “Well what does you gut say?”.
Eddie – “Look man, I got to go”.
After that it was off to an annual cocktail gathering held by Martin Landau. I decided to tell Martin that we were asked to propose a price. When I asked him what he thought… he said – “Whatever makes you happy”.
His associate on the other hand said 15-20 million.
The night rambled out of control after that. We mooched in on Martin Landaus dinner, drank too much wine, and ended up singing karaoke till late… very very late. There may be even video evidence.
Hence yesterday, I was extremely tired and emotional.
Today we hope to get our offer over to the potential buyer.