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TylerE 5 days ago

I think the real real giveaway is that like 90% there's a big exit, it's an aquihire and the "product" is quickly dumped.

JCM9 5 days ago | parent [-]

Yep. Many / most aquihires are pretty ugly financially. While the headline sounds impressive (“X startup acquired for $250M”) the reality is that with preferred cap tables and terms most folks see nothing and investors are merely trying to recoup some losses or make a modest (less than S&P500 index fund return) return on investment. It’s basically a fire sale to salvage what’s left from the wreckage.

Founders might get a little something and most shareholder employees get nothing.

nkingsy 5 days ago | parent [-]

Don’t they usually get a better stock package than the average new hire?

5 days ago | parent | next [-]
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gdbsjjdn 5 days ago | parent | prev | next [-]

In my experience what the founders usually get is a bigger locked up retention package. The investors want the cash, and the acquirer wants the founders to stay.

mandevil 5 days ago | parent | prev [-]

The employees along for the ride on an acquihire? Sometimes yes, sometimes no. Depends a lot on how generous the founder/target of the acquihire is.