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Investors Don't Like Acqui-hires

16 pointsby transburghover 12 years ago

2 comments

Sambdalaover 12 years ago
This is pretty obvious right?<p>All of the comments on the pandodaily article revolved around the fact that VC doesn't get their homerun payday during an acqui-hire.<p>It seems like the discussion around acqui-hires revolves around what the commenter's personal interests are for the most part.<p>However, it makes sense that the acqui-hire would become more prevalent for a couple reasons. There are many more startups being created, both increasing the supply of startups to acqui-hire and decreasing the %age of startups that exit in a home run. Also, the market price for developers is going up, and seeing someone execute and deliver a product in a product vertical you want to execute in makes you worth a large multiple of an unknown and/or average developer.
benologistover 12 years ago
Investors who don't want their startups to accept an acqui-hire already have all the protection they need: make a better offer.
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