A couple of months ago, my boss and I bought shares of a startup that was in the process of raising funding from angel investors.
The company had a great product and a good valuation, but we wanted to buy more shares.
So I went to the stock exchange and bought an additional 15,000 shares of the company.
I figured that would put us at a better valuation than the one I was at and make it easier to sell.
But the company didn’t really do much of anything.
It was just doing what I wanted it to do and selling a few hundred shares a day.
The CEO was in his mid-20s and was getting paid $150,000 per year, and we were looking for investors with experience and knowledge.
I wasn’t interested in being a salesperson for a startup, so I took the opportunity to invest in something that I was not really sure was going to work out.
So, after spending $500,000 on the company, I was surprised to learn that the shares were worth less than $200 a share.
I went back to the company to see if I could help them figure out how to sell more of their shares.
They were having trouble raising capital, so they decided to cut costs and make the sale through direct mail and Facebook ads.
I was shocked by how much less it was than the $200 I had paid them, so when I got the phone call a few weeks later, I had to make the decision that I could no longer take on this venture.
I ended up leaving the company and transferring to another startup.
My advice to other young entrepreneurs looking to get into the business world: don’t let your passion for selling start your career. Read more