I have just had a 2 approach to buy my app project before beta release. I was considering equity sale but not full sale. It is a project that I would like to deliver and most importantly, it is a mission for me. I said NO. Anyone with similar experience?
curious to know more about this situation.
This situation is I was trying to raise funds and attended an tech event informally pitch the app to backup my indiegogo campaign (these are not best platfrom for app crowdfunding). The app itself offers a good proposition for revenue generation. After conversations with someone interested in the idea, instead of offering to take a stake, they wanted full control because that is their current investment strategy. Then last friday had another offer also for full buyout at 200K
“I have just had a second offer to buy my app before beta launch?” Is that a question or statement?
To make a good decision, consider the long-term value of the app. I can’t tell you how to calculate it because there are no details of the business model. There are some formulas for the lifetime value of a user/customer. Then compare the time you want to invest to the app to see if you will be satisfied by the buyout price as a “salary figure” for the years you would put into it.
If you refuse to sell it - then you think it cost more. What was a multiplicator of the value. I mean if you had a 200k offer - is it 5x-7x(usual multiplicator)?
If you refuse to sell it - you feel power to push it forward and make more - it’s a sign of founder that can take risks.
It is a statement. I initially wrote what should I do? before rejection
it is a risk worth taking. In actual fact, not as big as the time I have giving up researching and developing. On third iteration. It is a mission I was to see through. The future will tell. I am actually crowdfunding to early adopters reduce need for Angel money at this stage.
Without knowing how much effort you put into the beta or anything other than the raw number…it sounds tempting. You could always potentially negotiate for more and that should give you a few years worth of runway to start a new project.
I think it all depends on how committed you are to pushing the app to the next level. Are you generating revenue? How far are you away from being “profitable” in the sense that you could pay yourself to work full-time?
@arthur.tkachenko @Dane @tom2 They have done an assessment of potential revenue from launch even with few users. My model is that the app generates revenue from onset without alienating users which I outlined to them. An attractive proposition to the money men. Let’s see how it all plays out
Well congrats on the offer! It must feel great. How much time did you put in already? I hope you can keep this thread updated with your progress.
@tom2 I did not accept the offer but will continue to work and deliver beta as planned. I have a vision on where I want the project to go
Looking forward to reading the story when your app is live.