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On the flip side, often the acquihires are ways for VCs to get a soft landing for a company that isn't working and return a little capital. There are reasons th
by MrDunham 3y ago
On the flip side, often the acquihires are ways for VCs to get a soft landing for a company that isn't working and return a little capital. There are reasons that venture capitalists maintain close relationships with acquisition decision makers a big tech companies.
Source: in the VC industry
- bombcar 3y agoPeople often think VC companies are either 0% or 100% unicorn; quite a few of them are somewhere in the "this probably almost could have been a viable business if it didn't have so many demands on profit" (there's a term for this, lifestyle business? I forget.) Acquihire can be a wonderful exit for those, as the VC can basically get back some or all of the money poured in, the people in the company get a job, and sometimes the product even survives as a feature.