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Twitpic's unfortunate fate is a reminder that your company hasn't been acquired until the money is in the bank. As pg put it, "Deals fall through" [1]: Startup
by mhartl 12y ago
Twitpic's unfortunate fate is a reminder that your company hasn't been acquired until the money is in the bank. As pg put it, "Deals fall through" [1]:
Startup founders tend to be optimistic. This can work well in technology, at least some of the time, but it's the wrong way to approach raising money. Better to assume investors will always let you down. Acquirers too, while we're at it. At YC one of our secondary mantras is "Deals fall through." No matter what deal you have going on, assume it will fall through. The predictive power of this simple rule is amazing.
[1]: http://www.paulgraham.com/fundraising.html http://www.paulgraham.com/fundraising.html
- pbreit 12y agoThis one is a little harder to swallow since the alternative is shutting down the service with no cash in hand. Surely there was a deal on the table to keep the service running?
- jmathai 12y agoThe terms still have to be compelling to be acquired. Acquisition isn't a panacea by any means. The details can make shutting down a company more attractive then going through with the acquisition. A simple example is an acquisition that doesn't sound terribly exciting, pays out money in earn outs and puts those earn outs 4 years into the future. Sometimes it's better to just get on with your life...
- pbreit 12y agoIf the monthly burn wasn't too bad, I'd consider taking it on.