What I learned to sell my company after selling Snapchat to Million 54 million

In 2014, Snapchat achieved our start, ScanMillion for 54 million, when the QR code was still relatively new.

Most people did not try them, and the phones did not support them. Technology was promised, but had no experience, so it sat behind a nasty UX. We removed this friction and made it easy to make, scan and deploy QR codes, which was immediately adopted.

The contract with Snapchat was smooth, not because of shiny decks or famous supporters, but because they saw how we focused on closing the use difference, how we moved forward and became associated with their major vision.

Hope to create a long -lasting company for any founder or one day is expected to sell it, I have found that success boils on some basic principles I have learned.

Related: I wish I knew before selling my company

1. What people make Original Use

Many founders start accessing presentations or investors before proving their products. From the first day, the scan was made in need of the user. We have made it easily scanned and QR codes, nothing like, just to scan and produce it only active and straightforward.

Just as with any beginning, we did not immediately raise the capital. However, we started quickly, focus on all helpful comments, and often made changes. Shortly afterwards, this strategy helped the app get more than 1 million downloads. By the end of 2012, the scan had more than 25 million apps installed. A few years later, we had more than 100 million copies of the products worldwide downloaded worldwide.

This user Krishna was more convinced than any pitch deck. It proved to be the highest value to the product market fit, signal investors and acquisitioners. When you start a business, make sure you have the last consumers in your mind and often repeat the energy instead of investing in fake demand. Remember that real use always defeats the fake value.

From the very beginning, my and my co -founders attached the character and the equity. This preliminary explanation, dividing the equity alike and playing with our powers, helps us stay focused and avoid internal friction, which kills many startups before starting.

2. Design the buyer keeping in mind

When the Snap Chat arrived, the scan was already built for the scale, was fully made local, with the creation tools that teams could use anywhere. The real alignment is clicked when Snap was blowing in the camera – when a snap was beaten into the camera – the first experiment.

In the Q1 of 2015, Snap Codes launched on the top of the scan core steak. The integration worked without interruption because we engineered for expansion, low light and low ink prints and used to keep up with uses used out of our original app.

If you are a founder designed for the environmental system, you are hoping that you will get your business in a shortlist for acquisition. Keep an eye on the measurements that are important to them, such as error rate, premature scan and activation. Find the capabilities of integration such as next, compliance, dependence and APIS. Discussion “if what?” Raises from “How quickly?” When strategy and culture are in harmony.

3. Know your numbers and what will benefit from winning the contract

A detail that had the earliest financial structure by removing all of all the acquisition. Our seed investors had the priority of solidarity, which means that no more than 54 million things will make meaningful profit to the founders or early supporters.

Snap’s first offer came under the same line. With the guidance of our lead Investor, we worked firmly. He reminded me: “Until you said three times, you didn’t get a good deal.” This mentality benefited us when it makes the most difference.

We used the pace as our liver and told SNAP that if they meet our number, we can start integration immediately. This explanation closed the space, and we signed the doorstep that we need to reach.

If you are preparing to get out or get out, know your hat table with cold. In addition to the preferential stack (seniority, multiplication, and whether prefers are participating), map the option – pool top – up and any safe or note. Explain your walk – away. Remember that leverage is not just about the price. Implementation speed, a special team and defensive IP can transfer all the terms.

Related: You need to do this 5 tricks before selling your business

4. Each dollar should drive speed

After collecting about $ 2 million in financing seeds, we felt confident, but confidence could be misleading indicators.

Without a rigorous plan, we signed an advanced lease in the city of San Francisco, and delayed experimenting with minatization strategies. Cash was used very quickly, and we ran out of the runway within months.

Nearly the crash taught me that funding is not a security net in any way. Each dollar should contribute to the measurement speed. Get deliberately hiring, preliminary tests and protect six months of cash buffer. Find out and move, but the sustainable benefit comes from operational discipline, which focuses on the work that in fact triggers the business. Such a financial and strategic explanation is often an important indication that you are ready to sell, when a business can operate freely, development is permanent, and decisions are in the basic principles rather than rapid changes.

5. Build for Freedom, not just exit

One thing I will do differently is to thank you more. It is easy to be trapped at speed and lose meaning, especially when building with friends.

Selling to the company gave us a breathing approach and room. The real lesson was not in money, but in building with the goal, creating a place where creative teams do their best work and shipping technology that supports human well -being.

This is the focus of my current company at the intersection of AI, performance and mental health. I am using these lessons with more intentions, clear results and stable, user guidance.

For the founders, treat an acquisition as a checkpoint. Use it to resolve the pain points, with the people you want to measure, and to reuse the effects you intend to leave. Follow carefully.