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If your company starts to go belly up and you get acquihired, you'll probably walk away as empty handed as a bank default, due to liquidation preferences and ot
by drewrv 10y ago
If your company starts to go belly up and you get acquihired, you'll probably walk away as empty handed as a bank default, due to liquidation preferences and other terms in VC funding.
- jfornear 10y agoDepends on the terms of the acquisition. From what I've read, they often favor founders and aren't great outcomes for investors. E.g., the windfall is often in the retention package to maximize for the acquirer who has the most leverage.
- lambdasquirrel 10y agoFounders aren't always in it just for the bank account. Between going belly up and shuttering, and going belly up and giving their team a chance in another company, existing customers, etc., acquihire is preferable to getting carved up. At the very least, founders need to save face too.