

Ask HN: How to sell a startup? - throwaway39390

Greetings, HN!<p>I have a bootstrapped embedded software-focused startup with a considerable amount of code written and some customers, but not yet enough customers to be sustainable without consulting income.  The proof of concept demo got quite a bit of media attention a while ago, but (as is common for startups) getting attention since then has been difficult.  I think the best thing to advance this concept would be joining with a company in the same market that has the established advertising, marketing, and supply chain needed to get this technology into more hands.<p>There are several established companies that I think would be able to make excellent use of my code, designs, and ideas for expansion.  My main question is this: How do I pitch to those companies?  From there, should I be contacting HR?  CTO/VP of Tech?  CEO?  Once I'm in contact with a company, how do I avoid tipping my hand and giving up all leverage (e.g. if they know I'm looking to sell, they may delay negotiation to try to run me out of cash and make me desperate)?<p>It seems there's a lot of information available for starting a company, but not nearly as much for expanding or selling one -- it seems it's assumed one's investors will take care of that.  As such, I would greatly appreciate any advice you can offer.  Thanks in advance.
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caw
So I've never sold, but I've just taken a college class with someone who has
sold a few companies. This is adapted from a hypothetical discussion of
selling or licensing a patent.

I think it'd be best to picture this as a normal sale of products, it's just a
larger deal. The people you're selling to has a pain point, and your company
somehow fits that pain.

Find out the pain and why your product (your company) fits that pain. Think of
possible objections. For instance, it sounds like you're solving the problem
of "I have this idea, and it can expand given sufficient resources!" But there
could be other reasons like "It will let others perceive you as a better
corporate citizen"

Do this for a while until you think you've exhausted the list, then go ask a
friend or two for some more input.

Figure out the top 3 players in the market. #3 wants to be #2, and #2 wants to
be #1, but #1 may not be as excited as #2 because they're already on top
(depending how wide the gap is). Whomever you're selling to is banking on the
idea that your assets will appreciate, but there's always knowledge that this
won't pan out. #1 may not trust you can deliver as much as their own internal
initiatives. The others may be more open to listening.

------
bigsassy
Here are some links I've collected over time:

[http://techcrunch.com/2011/06/12/9-important-things-sell-
sta...](http://techcrunch.com/2011/06/12/9-important-things-sell-startup/)

<http://jacquesmattheij.com/How+To+Sell+Your+Company>

[http://maplebutter.com/getting-your-startup-ready-for-an-
acq...](http://maplebutter.com/getting-your-startup-ready-for-an-acquisition/)

[http://www.davidgcohen.com/2010/06/18/you-have-
acquisition-i...](http://www.davidgcohen.com/2010/06/18/you-have-acquisition-
interest-now-what/)

[http://www.slideshare.net/VentureArchetypes/startup-exit-
str...](http://www.slideshare.net/VentureArchetypes/startup-exit-strategy-
thought-piece-v76)

<http://blog.asmartbear.com/how-value-company-1.html>

<http://news.ycombinator.com/item?id=2154106>

[http://startups.ryanjunee.com/acquisitions-pulling-back-
the-...](http://startups.ryanjunee.com/acquisitions-pulling-back-the-covers)

<http://horizonpartners.com/article/things-fall-apart-part-i>

[http://horizonpartners.com/article/timing-ma-part-i-
it%E2%80...](http://horizonpartners.com/article/timing-ma-part-i-
it%E2%80%99s-complicated)

[http://walkercorporatelaw.com/ma-issues/5-biggest-
mistakes-e...](http://walkercorporatelaw.com/ma-issues/5-biggest-mistakes-
entrepreneurs-make-in-selling-their-company/)

<http://www.avc.com/a_vc/2011/02/ma-issues-breakup-fees.html>

<http://news.ycombinator.com/item?id=2253869>

