7x on Paper. Break Even in Cash. Adam Spector on Staying in the Game After a Sale. 

Adam Spector co-founded LiftIgniter in 2014, which used machine learning to personalize websites the way YouTube does. Growth stalled, and with no way to prove the company was causing the results customers saw, it could never charge what the work was worth. The board brought in a new CEO to sell, and when Adam argued to keep building he was outvoted two to one. It sold in 2018, mostly for its engineers, and he left soon after. 

Like a lot of owners, he wanted to stay in the game. Keeping a hand in, backing people doing interesting work, staying near the part of the job he really enjoyed. For Adam that meant putting money into other people’s startups. More than a decade in, that portfolio shows seven to eight times on paper. In cash, it is roughly break even. In this week’s episode of Built to Sell Radio, you discover how to 

• Find out how long a paper win takes to turn into cash 

• Work out who holds the vote on selling your company, long before it comes up 

• Tell the difference between a stall that means sell and one that means dig in 

• Find out why staying close to the action rarely works the way you picture it 

• Learn what it costs to be right about something and too cautious to act on it 

Show Notes & Links

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Definitions

Letter of Intent (LOI): This document outlines the basic terms and conditions of a deal before a formal agreement is drawn up. It serves as a mutual commitment between the buyer and the seller to move forward with the transaction on the agreed-upon terms.

Due-Diligence: This is a comprehensive appraisal of a business or investment undertaken before a merger, acquisition, or investment. It seeks to validate the information provided and uncover any potential risks or liabilities.

Earn-out: This is a financing arrangement for the purchase of a business, where the seller must meet certain performance goals before receiving the full purchase price. It reduces the buyer’s risk and aligns the interests of both parties post-acquisition.

About Our Guest

Adam Spector

Adam Spector is a San Francisco based founder and investor. He co-founded LiftIgniter in 2014, a machine learning company built to bring YouTube-style personalization to the rest of the internet, and sold it to Maven in 2018. He has spent 16 years in Silicon Valley, including early stops at Clearwell Systems, which was acquired for $400 million, and Twitter. He has been backing startups since 2012, first by pooling small checks with other angels years before AngelList made that routine, including an early investment in Human Interest at an $8 million valuation. These days he puts most of his private money into late stage deals through special purpose vehicles.