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The logical exit for these smaller tools companies as growth slows is to get acqui-hired by the Twitters, Facebooks, and LinkedIns of the world. However when y
by hkarthik 10y ago
The logical exit for these smaller tools companies as growth slows is to get acqui-hired by the Twitters, Facebooks, and LinkedIns of the world.
However when your entire team is remote, that makes these companies steer clear of acquiring you since you won't fit into their culture. So they will go for your competitors with a crappier product, but a local team that they can quickly bring in onsite within a few months.
- skrebbel 10y agoAcquihire? For a company that does $13M annual revenue?
- erdojo 10y agoDepends what that $13M costs them. CAC and burn are critical factors in an acquisition.
- elsewhen 10y agoa company that offers as a primary feature its ability to post to _multiple_ networks, is unlikely to be able to sell to any of those networks. the acquirer would likely have to be some larger "tools" company.
- koolba 10y agoBest bet would be to get someone who doesn't know what they're doing, will overpay, and bungle the post acquisition. What's Yahoo's M&A department's phone number?
- the_watcher 10y agoOr, given that they've now been profitable for 7 months, they could continue to exist without an exit strategy.
- shostack 10y agoHow does that work in the VC-funded world? If a company's growth has dramatically slowed, but they are still profitable (even with a down year here or there), are VC's ok letting them chug along without an exit? My guess would be no and they'd push for some sort of private sale.
- argigg 10y agoA company that accumulated enough cash could, in theory, buy out its investors. This would allow an impatient VC fund to return cash without involving any other party. Not sure if a VC-backed startup has ever done this.