It feels pretty good when a startup founder wants to buy your domain name. I know the domain name can probably incrementally help the business, and it will likely open some doors or impress some people as they raise capital. Oftentimes, it can be challenging to get that startup to make an acquisition commitment. ‘We’ll be in touch after we close our next round,’ a founder will tell me.
Every once in a while, I will touch base and see if anything has changed. Perhaps the business has gained traction, grown revenue, or the company has realized it is hampered by its current domain name. Sometimes founders will stay in touch, and other times they disappear.
Many startups fail. The business couldn’t find the right product or service for their market, or they couldn’t make the business work financially. It’s unfortunate when a startup that could have benefitted from a domain name doesn’t make it. There is a very good chance the domain name had absolutely nothing to do with the failure of the business, but there was always the hope the company would be able to take a leap and make the purchase.
I’ve sold domain names to high flying startups that continued to thrive. Others were later acquired. Some have even failed. You never know what’s going to happen with a startup.
When you’ve been discussing a domain name with a startup for a long period of time, and you learn the startup failed, it’s a sinking feeling. What was once a glimmer of hope for a major sale is now a bit of gloom. The only positive is the domain name still holds value for the next business operating in that name space.
