From a Founder's Lips to Our Ears
As part of a summer project to understand the value Founders see in a “Z-Exit”, we reached out to several founders of companies that we acquired several years ago as part of our ZX Ventures launch. We committed to having the businesses remain Founder-led, and to providing the resources necessary to unlock growth. These were the first, truly Founder-centric deals we constructed, with earn-outs at Year 3 and Year 5 based on aggressive targets, so we didn’t really know how they would work.
I am proud to say that this Founder expresses no regrets in his decision, agrees that we did help accelerate the growth of the business and achieve a life-changing event for he and his family. He also shares some things that we should be mindful of, mostly related to bureaucracy and over-involvement from the Mothership.
Some great food for thought and validation of a Founder-centric model!
From: Founder?
To: Martin Suter
Subject: Re: Would love to get your thoughts...
________________________
To start the conversation I took some time to answer the question below.?
A few examples:
Q: Has ABI helped to create value for the business?
- A: Sure, it has helped to grow it much faster. Sometimes I think a little bit too fast and we didn't get time to really adjust everything to keep it as a profitable business.?
Q: If yes, what are the key things that ABI brought to the table?
- Capital to grow inventory, organization, recruit good people, re-align salaries, and push marketing to bring more net revenue.?
- Products: Great beers with good margins?
- Process, meeting, reporting... Sometimes too much
Q: How has the partnership with ABI helped to realize your dream?
- Yes it does, personally (to secure my family life) and for my business to bring it to a new level.
- I've never thought it was a bad idea to sell the company. It was a great experience. The first 2 years were great, the 3rd (with earn-out) was really challenging but we did it, the fourth is a little more boring cause there is no real (big) bonus for me. It's a transition year to prepare 2020 which I really want to start!?
Q: In retrospect, do you feel the deal construct was preferable to the traditional VC route?
- I founded my company with love money?
- I raised 300k with business angel in 2009?
- I raised 600k with VC found in 2012?
- And sold to Industrial in 2016?. For me it was the goal and the road I was working on. As a result I wouldn't change it.?
Q: What should we keep doing?
- Keep motivating people with a great eco-system (Zx) which is really motivating. I met so many great people.?
- Bring new great founders to keep this entrepreneur mindset
#ZXVentures #Z-tech #founders #growth #DreamBig #ChallengeAccepted