What's new
What's new

OT: My other company just sold. This changes a bunch of things for me.

Congratulations! What a wonderful invention--it must feel good knowing your product has helped so many people. A reward well earned.

I am on year 14 with my company and in theory a sale could finance an excellent early retirement but probably still a few years from celebrating. I know it can be a long and lonely road so am happy to see it work out for you, especially years after your involvement.

I can honestly say that this has been the only thing that kept my head out of a noose hanging from the forklift for several years. At times it barely did that. This has truly become a life changing event even though it is but a fraction of my previous business sales. An expensive ex wife sure took the wind out of those. I became worth divorcing and in hindsight sucked as a husband.
 
I can honestly say that this has been the only thing that kept my head out of a noose hanging from the forklift for several years. At times it barely did that. This has truly become a life changing event even though it is but a fraction of my previous business sales. An expensive ex wife sure took the wind out of those. I became worth divorcing and in hindsight sucked as a husband.


I have heard some wives can be that way...

Gotta say though...if you have been away from the company for so long, its is surprising your partners kept you in on the sale profits. Patent in your name or not...have a friend that twice his partners back stabbed him. Took his company or split taking his design with them.
A lesser guy may have folded, but each time he went back out and designed something even better, starting over.


Your design, a beauty in its simplicity! I believe that is the true mark of a great design.

Making money is a great reward, but knowing your making so many lives better because of something you had a hand in...that may be the true icing on life s cake.

Congratulation to you!
 
I should disclose that I haven't been involved in the company for the last ten years. I designed the product and saw it through production and testing then served on the board for 3 years. Then I had a stroke and resigned from the board since I couldn't handle the stress and was dumb as a stump for 6 months, I still might be stupid but I like to think not. I put up about half the capital to get it through the early phases then they raised millions from angel investors. It is expensive and difficult to launch a new medical device that is unlike anything else available. Mayo clinic was an early adopter and still uses a ton of them throughout their system.

This is my third company sold that I have started. The second one was a system for handling and dispensing radioactive seeds for prostate cancer. Our team was completely unqualified to develop a system that loaded needles in the operating room in real time. One We had the first solid state measurement sensor for measuring radioactive source strength ever approved by FDA. We also had to deal with sterilization of the seed cartridge. Because of radiation decay we had to be able to sterilize the product the day it was loaded and ship it the next day. This was the first product of it's kind that FDA cleared for parametric release, in other words next day shipment of sterilized product.

We were the most unqualified group of guys to pull this off. We had 4 machinists, two software guys, a lawyer (my partner in this) and a couple electronics guys. None of us had ever worked in the medical field or had gone through FDA clearance before. We sold the company 18 months after we started and had 6 companies bidding based only based on the patent submissions. All of the staff made 1-2 years salary from their options. The product is still in wide use 15 years after development. I have 8 patents from that product line.

It has been great to have the opportunity to develop products that genuinely have helped people. I really hope I never need any of the stuff I developed.

And after all this I am still loading and deburring parts on a Sunday evening. I am the poster child for what happens when you don't go to college. Don't be like me.

Dan

Don't be like you?

You just became one of my heroes!

(edit)

If this had been around 20yrs ago I might not look like an N-gage railroad beneath my shirt.
 
just out of curiosity.. wouldnt it of been more profitable to license the IP?

No I don't think it would have. The problem is they had a lot of shareholders looking for an exit after way too many years. We turned down offers in the first couple years because we were confident it would be worth more later. It was worth more later but they raised millions to grow it and we got diluted down significantly. My ownership went from 30% to 7%.

Medical startups are always a crap shoot. They can take a lot of cash and Doctors are creatures of habit and most tend to stay with what the know rather than try new things. Selling into hospitals is very expensive and a slow process to get them to add new vendors.

I am just thrilled it's done with. My wife is too since she just got her dream truck last night.
 
I could see where that device would be useful after some customer meetings.... :)


On a serious note, I looked at the website thoroughly and that is an awesome product! Thanks for being a positive contributor to the healthcare world.
 
Glad to here this ended well for you. I ultimately got pushed out by another company I partnered with and while I got royalties for 16 years I still lost $500K. The stopped making my product last year after a 25 year run.

Working on my 4th startup right now. No equity but I get almost $100k salary and royalties of $1K to $7K per unit depending on the product sold. So I hope it flies!
 
Glad to here this ended well for you. I ultimately got pushed out by another company I partnered with and while I got royalties for 16 years I still lost $500K. The stopped making my product last year after a 25 year run.

Working on my 4th startup right now. No equity but I get almost $100k salary and royalties of $1K to $7K per unit depending on the product sold. So I hope it flies!

I hope the new company works out for you. That is a nice salary.

The first half of the funds hit my account this morning. I paid off my business loans, turned off the machines and lights. Now we are going to the casino to stay overnight. Perhaps I take tomorrow off too. What a great day!
 
"I became worth divorcing and in hindsight sucked as a husband."

best line ever...lol.

hey...good job. Way to hang in there! This should allow you to keep machining until you're broke again....;)
 
I hope the new company works out for you. That is a nice salary.

The first half of the funds hit my account this morning. I paid off my business loans, turned off the machines and lights. Now we are going to the casino to stay overnight. Perhaps I take tomorrow off too. What a great day!

Amazing how quick things can go south. I've worked for the owner for 4 years and was moved into a second company which he set up to do manufacturing. I kept telling him he needs to treat this second company like a real company and not a hobby, and he needs contracts with all the employees etc. He agreed to the royalties on all the products I have designed right from the beginning, but dragged his feet on getting contracts signed. He gave a me a draft contract for the royalties and I was good with all but one tiny exception. I get the final version and all of a sudden there is an entire employment contract attached where his lawyer is trying to put the horse back in the barn when it is already in another county!

It says all the work I've done for three years and not yet compensated for belongs to the company. I see why this is important, he is likely running out of cash because he has been chasing opportunities that lead no where and will need soon outside capital. Not having the IP tied up nicely, and knowing that a couple other employees that I have been training will follow me out the door if I am fired or quit makes it tough to get money.

I was doing this kind of work before I came here, so you can't prevent me from taking my skills and knowledge and going some place else to do the same thing. So as I see it we are partners whether he likes it or not, as there is no company without me. I did the mechanical design, hydraulic design, electrical design, process design, and PLC design, so I don't need any drawings or files to take it with me. I've got leverage, and this time dammit I'm NOT giving it up without compensation!
 
Gary...it sounds like he kept you off the paperwork as much as possible...well, that's a double edged sword...if you haven't signed a bunch of no compete clauses it would behoove him to play nice.

While you have every right to be ticked off (I have been there before and i DID walk) if you can at all bring pressure to bear so that you have a huge equity stake you may come out alright rather than just crashing the whole thing. But you have to keep a cool head. Best to you on this one!
 
There is a saying "Never attribute to conspiracy what can be explained by stupidity" In this case I'm afraid his experience running a very successful manufacturers rep firm has not prepared him for actually manufacturing stuff. He often thinks I am completely wrong with how the manufacturing side works. I keep telling him I am carefully watching, because I have never seen anyone one else do what you are trying to do successfully.
 








 
Back
Top