You might think the goal of any startup is to become worth more than $1 billion.The Times’ Nick Bilton says it shouldn’t be.
In a new column, he lists five reasons why it’s terrible:
- Once you’re in the billion-dollar startup club, it’s hard to get out safely.
- Hardly any company can afford to buy you, unless it’s Google, Microsoft, or Apple, which hardly makes acquisitions easy.
- You need to have flawless execution once you’re valued at more than $1 billion.
- If a company is overvalued it might need to implement “down round investments” to put the company at a lower valuation.
- It’s harder to attract good talent because there’s less of an opportunity for that new employee to get rich.
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