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Congratulations to the Cove team! -- I wonder if talented, experienced, and coveted engineers and designers in the Valley right now (read: talent frenzy) can
by jason_shah 15y ago
Congratulations to the Cove team!
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I wonder if talented, experienced, and coveted engineers and designers in the Valley right now (read: talent frenzy) can start their own stealth companies and reasonably plan towards a relatively early stage acquisition, be it for talent, technology integration, or both. But it seems to be a growing trend that wouldn't be as possible in a downturn or when talent isn't so scarce.
If they work on a technology and business they want to be working on anyways that will integrate with several potential buyers, it seems like it hedges start up risk and offers more upside (impact, financial, and otherwise) than merely jumping from one company to a more senior role at some other company where you have a little more say in what you work on and can negotiate 10-20% more compensation, excluding equity, when you jump jobs. These sort of jumps have a completely different cost-benefit profile than starting your own company. It seems like potential benefit is uniquely outsized nowadays.
Choosing to not raise seed capital seems like an option if you plan to exit in less than a year and have the savings to do so. And by not raising capital, an acquisition this quickly seems far more aligned with everyone's interests and cannot be slowed or prevented by any investors holding out for a larger exit.