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How profitable is the typical acquihire for founders? This article cites $5-15 million exits but I've also read about circumstances where the purpose of the acq
by ritchiea 13y ago
How profitable is the typical acquihire for founders? This article cites $5-15 million exits but I've also read about circumstances where the purpose of the acquihire is largely to get the VCs something greater than zero for their investment and for the founders to save face.
Is it really common for founders to walk out of an acquihire with millions in the bank, as this article suggests? If founders can walk away with millions for just competently attempting entrepreneurship then there is little doubt the incentives are misaligned. But if founders earn little to nothing and VCs get some cash returned to their funds, it's a more reasonable exit.
- hkmurakami 13y agoThat entirely depends on how much VC money they took