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A YC Company is no different than any Business when it comes to failures. Once it has failed, it will either sell its "assets" (very commonly known as Asset Sal

A YC Company is no different than any Business when it comes to failures. Once it has failed, it will either sell its "assets" (very commonly known as Asset Sale), do an acqui-hire or just fold completely because no one wants to buy even their "assets". I personally was involved in trying to acquire a failed YC product (wont call it company by that time) that was already sold earlier by original founders and the previous buyer was reselling because he couldn't do anything with it. We didn't agree on a price so I walked. At that time, it was already listed for a much smaller value than what a VC would like. Think really small like in the low hundreds of thousands, forget millions. I also have spoken to a previous YC founder whose startup failed and they basically got acqui-hired and he was really unhappy with how everything turned out. No one remembers their brand name. As few other comments have already pointed, brand names are overrated especially for failed companies. No one remembers that name because they weren't popular to begin with. Its not like every YC company has a well known brand. Far from it especially nowadays when YC funds so many.

throwawaycities 2y ago
Thanks for the comment, (I think) it’s really interesting. I have a bunch of questions about that experience, but limiting to just one: >At that time, it was already listed for a much smaller value than what a VC would like. I understand you were in talks with a product not necessarily the entire business or even the brand assets, but can you expand on “listed”? Makes it sound like a public marketplace with a price. >brand names are overrated especially for failed companies. I think this is where my post wasn’t clear and misinterpreted. My post is being interpreted as an acquisition for the purpose of trading off the goodwill of the prior business. Whereas, I’m envisioning an acquisition because the dead company has a great name and a portfolio (short branded .com, branded social media handles, trademark) that would be a great name for any business/startup rather than leveraging the goodwill of any prior business operating under that name. For example, I’m just making something but if there were a YC company “telehealth” and they owned Telehealth.com and @telehealth social media handles, there would be plenty of established businesses/startups that would want to acquire that brand portfolio having nothing to do with the prior business.

throwawaycities 2y ago

Thanks for the comment, (I think) it’s really interesting. I have a bunch of questions about that experience, but limiting to just one: >At that time, it was already listed for a much smaller value than what a VC would like. I understand you were in talks with a product not necessarily the entire business or even the brand assets, but can you expand on “listed”? Makes it sound like a public marketplace with a price. >brand names are overrated especially for failed companies. I think this is where my post wasn’t clear and misinterpreted. My post is being interpreted as an acquisition for the purpose of trading off the goodwill of the prior business. Whereas, I’m envisioning an acquisition because the dead company has a great name and a portfolio (short branded .com, branded social media handles, trademark) that would be a great name for any business/startup rather than leveraging the goodwill of any prior business operating under that name. For example, I’m just making something but if there were a YC company “telehealth” and they owned Telehealth.com and @telehealth social media handles, there would be plenty of established businesses/startups that would want to acquire that brand portfolio having nothing to do with the prior business.