The New Road to Riches, Redux
Following up on my last October’s cover story, The New Road to Riches, many more people are coming around and embracing the build-it-flip-it model. Good to know that Jeff is on board. He writes, “What is interesting is that Topix is the yet another Internet startup to develop a meaningful presence without any VC financing, and end up being taken out – at least partially. These exits would not make sense for ‘traditional’ VCs that need to deploy at least $5 to $10M per deals, and need to generate at a bare minimum 3X to 5X on that capital. But it makes sense for angels and founders – and people helping them develop the shop like yours truly, who have to accept to live for some time on ‘Macaroni and Cheese’. Alternate model ? ” New Road to Riches/Business 2.0.
Thanks for the reminder :-).
The key thing is that “Built it-Flip it” is an alternate model, but entrepreneurs should not believe that it is so much easier than building a longer term, sustainable company.
I have added a reference to your piece and Tim Oren’s, that I find quite complementary on the subject.