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If you contact VCs while in talks of acquisition, do you tell them that you have an acquisition offer from xyz corp? This could backfire a few ways. If the acqu
by nodesocket 12y ago
If you contact VCs while in talks of acquisition, do you tell them that you have an acquisition offer from xyz corp? This could backfire a few ways. If the acquisition offer from xyz falls through, this signals to the VC very negatively and probably means they won't do a round now or even in the future.
- birken 12y agoEverything depends on your situation, but in general VCs are influenced by social proof and need a forcing function to make them make a decision. So an acquisition offer can be both of these things in the right circumstances. The problem with this line of thinking is that if you are getting either serious acquisition offers or serious VC interest, then your company is probably doing very well and you don't really need to sweat it. But... if you would rather raise VC funding and for whatever reason you are only getting serious acquisition interest, you should probably talk to VCs right away and mention it.