OnHollywood: Early Stage Exit Strategy:”Buy, Hold, Sell”

Jeff Clavier takes a VC view of the Day 2 session on early stage exits featuring Jason Calacanis, who’s learned a few lessons on exit strategy; investor Tim Draper, Pandemic Studios Josh Resnick; Fenwick & West partner Mark Stevens. Banker Mike Montgomery did the honors as moderator.
— Calacanis, who sold to AOL, wanted to capitalize Weblogs Inc. further but didn’t want VC money because he thinks they are focused more on limited partners than on the entrepreneur. Clavier doesn’t agree. Neither did Draper, who said VCs will stick for the long haul.
Dan Farber reports on Draper’s view that Sarbannes-Oxley makes it harder for startups to go public. “SOX has made it so a company can’t go public with $20 million in revenue. SOX costs $3 milion a year. Entrepreneurs who break their back for five or seven years and get to $20 milion have three or four more years left. SOX ruined our businessâ

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