Startups compete with each other and all wish to reach to top most position..
Henry the mentor finds it weird..
2 startups in aggregation all providing cab sharing facilities.. each competing heavily..
Founder Streak calls his competitor James for a dinner
Streak ‘Let us keep investors at bay.. whatsoever new clients I get.. you take 50% profit and whatsoever you get, I take it.. this way we both will continue to grow.. and as we have two bunch of investment team.. both will be happy…
James ‘but we need to declare this to our investors’
Streak ‘so what.. let us talk to our investors’
James ‘but they may want both of us to merge’
Streak ‘dear… why is there is a need to merge or acquire.. if intent of both founders are right for sharing’
James ‘you have a point?’
Streak ‘when will all this end?’
James ‘we will consolidate over an IPO… boom… boom… valuation multiples heavily’
Streak ‘I agree…’
James ‘do you know why many entrepreneurs fail? they do not know when, where, how to share… either they negotiate too heavily.. or they give up too easily’
Streak ‘I agree.. so cheers over this weird negotiation’