9 ms·
Acquisition Offer and Y Combinator Application
Hi,
We like to apply for Y combinator next month, but we also have started two acquisitions offer talks which can take up to four to six months.
So we wonder should we mention this fact in our application? Does it have a negative impact on our application?
Also, we have NDA with those companies, so we can name them.
- pryelluw 7y agoAcquisition offer talks should not be taken seriously unless the interested party is willing to put something in writing. That also includes some sort of financial benefit to you in the case the deal falls through. I would not take offers without such conditions seriously. In regards to YC, how can joining an accelerator that opens a valuable business network be anything but a benefit?
- snisarenko 7y agoI want to add to this comment. Previous HN discussions on acquisition have talked about asking for a non-refundable negotiation fee (a certain percentage of your approximate valuation). Acquisition is a distraction, and in a lot of cases falls through. You need to make sure the other side is serious about the aquisition Found the HN thread: https://news.ycombinator.com/item?id=22013700 https://news.ycombinator.com/item?id=22013700 And the related article https://baremetrics.com/blog/i-almost-sold-baremetrics-for-5m https://baremetrics.com/blog/i-almost-sold-baremetrics-for-5...
- aliomrani 7y agoGreat Point. Thanks.
- codingdave 7y agoI can't speak for what impact it would have on a YC application, but I can say that acquisition talks are exactly that - talk. Don't make business decisions on the assumption that talks will turn into anything more than just talk.
- muzani 7y agoRelated: http://www.paulgraham.com/corpdev.html http://www.paulgraham.com/corpdev.html "It's usually a mistake to talk to corp dev unless (a) you want to sell your company right now and (b) you're sufficiently likely to get an offer at an acceptable price. In practice that means startups should only talk to corp dev when they're either doing really well or really badly." I think it's fine to mention this. VCs appreciate having as much data as possible. Hiding data that hurts your application makes you come across as shady.
- relaunched 7y agoThis is a huge distraction, unless you want to sell, now. Otherwise, I think you are a little confused about what YC is looking for. At best, acquisition talks are social proof, but you can't focus on growth and diligence. Also, it s teams you don't want to be a big business. So, you're going to broadcast that you aren't committed to going big, nor are you focused on a building a product that people love. That's not a great way to approach YC.
- WnZ39p0Dgydaz1 7y agoIt signals that you are looking to sell early, which is the exact opposite of what YC and VCs are looking for, which are startups that try to go big to create outsized returns. Don't mention it. That being said, there is a conflict of interest here that you may want to think about more deeply. Trying to sell a company while also applying for accelerators? What do you want, build a high-growth startup or cash out asap? Both are valid, but you may be unhappy with your decision of joining an accelerator if all you want to do is make a quick buck.
- aliomrani 7y agoThanks, I got the point about how mentioning it can show us an unambitious team. My main concern was around if we were not transparent.