[brijeshp]

I agree with most of the other comments here regarding the over-generalization of the $20 million offer.

"Would you sell it for $20 million?" There are so many variables for consideration in answering this question that can result in anything from a symbiotic relationship with a bigger player to augmenting the market using the buyer party's core competencies to just forfeiting the rights to the other party (which is the only viewpoint factored into the author's answer- "find a new idea"). Don't need to necessarily find a new idea as much as be a master of the idea's fate.

Nonetheless, I heartily agree with the last section- mastery of a domain of knowledge. Advice needs to be slapped as a layer on top of hardcore expertise. I've made this mistake in the past of letting the allure of a tech lead me to an area where I didn't have the necessary expertise and idea dissipated quickly. Now I'm focused on an area that my partner and I have deep-seated expertise in and the advice is very easy to cut through to take only the nuggets that apply.

[dongle]

Again, you're totally allowed to sell your company for $20 million dollars (or less) when the offer comes. If you're thinking about exits at all at the SEED FUNDING STAGE of your company, that offer is never going to come.

[michaelochurch]

If you're thinking about exits at all at the SEED FUNDING STAGE of your company, that offer is never going to come.

If the maximum potential is $20 million, and we're talking about the VC-style go-big-or-go-home sort of business, I agree. A business that will be worth $20 million if everything goes right is likely to end up near zero. The distribution is non-normal and most companies don't reach 50 or even 25 percent of their maximum potential, but less than 1 percent. If the IPO option isn't at least open, try again.

On the other hand, I think people should be honest about all the possibilities. Choosing a path based on what happens for the winningest of the winners is a terrible idea (even though it's what a lot of people do, and why companies overpay their CEOs; overpaying executives is actually cheap when you consider how much harder the chumps work for the slim chance of reaching that level). Which is better, a 60% shot at a $20 million exit, or a 1% shot at $10 billion? Expected value (which VCs care about) says one thing and common sense says another.