Two founders discuss why tech startups struggle to sell even after raising millions. A startup's sale price has nothing to do with how much you spent building it. Investors value what customers will pay, not your burn rate.
You guys are kind of great about, you know, on your marketplace weeding out the ones that can't really, you know, aren't obviously ready to sell. So zero revenue or being upside down, obviously. So pre revenue, that's not going to work. You know, and it's sad because I think these people, you know, people spend like. And I've had a tech company, I get it, you know, you spend 600k on building the software and you think you're at least going to get that or more. And that's not necessarily true. So that, that's kind of hard to, to tell people.
I gotta say that's, that's my least favorite just because we do see a lot of that, like, Well, I spent 500,000 building this, so it's now therefore worth 500,000. And it's no, you know, there's so many factors like you probably could have developed it at a lower cost and number two, no one cares. And so that one, that's a tough one, but we see that quite a bit. So I agree with you there.
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