3 ms·
I worked at a startup where our software was in escrow, and we had a couple clients signed onto it. I've never been on the other end, though. I can see a few p
by gregmac 2y ago
I worked at a startup where our software was in escrow, and we had a couple clients signed onto it. I've never been on the other end, though.
I can see a few problems with this. In the case of an MSA taking over, it doesn't necessarily satisfy the exit plan requirement, because as you say in another reply they could charge an arm and a leg. 10x'ing the price overnight isn't really much different from it shutting down.
The other issue: I am a developer and architect, I want to primarily design systems and write code and make stuff. Know what I definitely don't want to do? Sit in meetings and talk about escrow agreements with C-level people, lawyers and sales reps. If there are two startup products we could use, one is exact-fit amazing but needs an escrow arrangement, and the other is OS core but will need dev effort -- I'd 100% rather spend my time doing the dev work.