Schroter: Startups.com evaluated over 100 venture-backed startups and acquired six
“We end up talking to, and doing diligence on over a hundred different venture-funded startups, And we ended up pulling the trigger on six of which all six completed.”
Schroter: Startups Drop to Zero Valuation the Minute Cashless Founders Quit
“Usually the founders are like, well, I just raised that a twenty million dollar valuation. And I'm like, yeah, and if you stop working there, the value is now zero. Like, it works there, there's no value. And most founders don't get that.”
Schroter: Distressed Startups Rarely Sell Above Their Liquidation Preference Hurdle
“In a lot of cases, by the time you get to this point, even if you've only raised a few million dollars, the likelihood that you're going to sell something and get over your preference hurdle is usually pretty low”
Schroter: Distressed Founders Can Renegotiate Their Payout Terms Pre-Exit
“One of the things that I coach founders on when they go through this is I say, hey, you know that you can go back and create a new deal for yourself within the company, right?”
Schroter: VCs Usually Write Off Failing Startups Long Before Founders Realize
“By the time you get there, investors knew this a long time ago. I mentioned that company that I did back in the mid-two thousands called Affordit. By the time I was like, guys, you're not going to believe this. We're going to have to shut this down. They were …”
Schroter: Startups.com only does asset purchases, never acquiring operating entities
“We always do asset purchases. We never buy the actual operating company. There's never any upside in it.”
Schroter: Struggling founders often ruin their lives before realizing they can quit
“And frankly, having met with thousands upon thousands of founders, I have hardly ever met a founder at the end of this that's just like, ah, I just, my feelings were hurt, so I had to leave. By the time I'm talking to folks, or even, you know, before then, the…”
Schroter: Acquiring One Million Startup Customers Failed to Deliver Cross-Selling Value
“I've acquired over a million startup in all the acquisitions that we did. Right. So a million customers on paper that should have yielded me Orders of magnitude of value, cross-selling products, et cetera, never happened, right? I mean, parts of it happened a …”
Schroeder: Swapalease reached $3M revenue and $1M EBITDA within a couple years
“Within a couple years they got to about three million dollars of revenue on about a million dollars of EBITDA.”