The successful exit startup rulebook. Creating a startup based on a feature of a big software.

• Massive software led big company that does everything [1]
• B dollar valuation, publicly traded company
• Runs an entire industry
• It is missing a feature [2] that many users wants.
• They are not implementing the feature because they are too massive and too busy
• You create a startup that replicates <1% of the big software but with that feature at the core
• Get seed round funded by YC or your favorite Twitter VC/Thoughtleader.
• Barely get enough users to run the business sucessfully.
• Get series A funded.
• Get an office in SF. Hire more folks - 20% PMs, 30% Engineers, 30% Marketing and 20% Sales mix. Everything else is done by contractors, agencies, SAASes and consultants that your investor recommended.
• Many users but most of them are on free tier. The startup is hemorrhaging money.
• VCs don’t want to raise another round.
• Do mutliple rounds of layoff over a few weeks. Essentially do 3-12% layoffs over a period of time that adds up to 87%.
• VCs are proud of you because it is traumatizing to fire someone over zoom and you didn’t flinch.
• VCs are proud but still can’t do Series B.
• VCs are start messaging people on LinkedIn to offload their investment.
• The publish a forbes article about how bold and disruptive your startup is.
• Through a game of telephone they bring the massive software [1] folks to the table.
• They try to sell the idea of “you are getting the idea, the founder and THE PEOPLE.”
• The founder will join as a VP or Sr. PM of a division that is essentially integrating that feature[2] to the software.
• Startup workforce are absorbed everywhere in the company, only some work at your division.
• Big company goes for acquisition. Does a round of PR. The CEO makes a Twitter post about the acquisition.
• Founder essentially did years long take home assessment for a PM job that he labelled as a startup, but at the end of the day he made some money although the retention contract is brutal.