This is NOT the message that we should be delivering to tomorrow’s entrepreneurs.
This is a photo from yesterday’s Themarker, after the acquisition of Yadata was announced. The articles’ headlines: The new millionaires. It is true that only $4.4M was invested in the company, and that investors made a nice return, but this is not what will create a sustainable business in Israel folks. Isn’t anybody listening???
We need to be able to build companies that will be sold for hundreds of millions, not tens of millions. Yes, a few new millionaires, local heros, etc., etc., etc. We have only ourselves to blame, as such exits are not something we should be proud of - at least not when there was venture capital money working. Bootstrap – that’s a different story.
Probably an unpopular thing to say at a time when these 3 very smart and talented guys have stepped up a notch in terms of their net worth; I am expecting better. Much, much, much better.
Sigh.
i so much agree.
on the other side many entrepreneurs when they see the colour of money start to loose the sense of ambition
Posted by: ouriel | February 29, 2008 at 11:26 AM
I see it as a first step. They are young....they can create larger companies on the next round...using what they learned from this experience.
Posted by: Leslie McCue | February 29, 2008 at 10:24 PM
Last night I heard Dr. Orna Beery in Jerusalem speak a little bit about smaller vs. large exits (after a question was posed whether or not Israel can create the next Nokia or Google) and her answer was interesting - many entrepreneurs would rather make a few million then risk it all waiting for an even larger exit which might not come.
After taking so many risks to actually build a new company - it must take a very special team and financial investors to say "no thanks" to a small exit and try to continue to build and expand into a major industry player.
Posted by: israluv | March 05, 2008 at 12:09 PM