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Secondhand Clothing Marketplace Twice Is Putting Up $1M To Acquire YC Companies

63 pointsby noaharcover 12 years ago

9 comments

noaharcover 12 years ago
Hey everyone, I'm the co-founder of Twice. Just wanted to add my 2 cents too.<p>- @jboggan, agreed. YC knows how to pick em.<p>- We're only planning on one acquisition for now.<p>- Yep, it's a mix of cash and equity -- we haven't quite finalized all the details -- and everything will vest (as is standard), but you'll at least be able to buy a car on day one.<p>- The equity is valued based on our Series A valuation, which, unfortunately, was substantially less than $100 trillion :-)<p>- It's definitely an expensive proposition for us, but awesome people make awesome companies, so we think it's worth it.<p>More at restartfund.com. Feel free to shoot me an email as well (noah@liketwice.com)
jbogganover 12 years ago
I can't remember who wrote this, but someone recently was blogging about YCombinator being the future of the educational and credentialing system. Stories like this make me believe the author's premise.
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aresantover 12 years ago
Brilliant, brilliant PR that's knocking every corner of the internet.<p>But the pitch feels a bit dishonest given that the $1m will be "a mixture of cash and equity"<p>A mixture could mean a $10k signing bonus and $990k in stock. And then what type of stock. And then at what valuation. etc.<p>But still, got to respect the hustle in that pitch.
gojomoover 12 years ago
Hmm, let's say they pay YC their liquidation preference, pay Milner's note, and give the team a small signing bonus and new salaries for the new mission.<p>Twice could probably do up to 5 such acqui-hires with $1M cash. It fits nicely with their second-hand clothing theme, while ensuring some consideration from any YC team on the verge of liquidating their existing organization.
netmau5over 12 years ago
I'm incredibly curious about how the Twice investors feel about this allocation of capital.
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Julianhearnover 12 years ago
Don't yc companies have only a few team members, say three. That $333,333 per team member. Seems like more money than sense. a good argument not to give startups much money until they have a profitable business model and just need money to scale.
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arbugeover 12 years ago
Desperate times call for desperate measures...<p>...is the Valley still a good place to launch given the enormous expense of talent there these days? Raise money there but hire remotely now seems like a better formula.
Codhisattvaover 12 years ago
So who's the product now?
sriramkover 12 years ago
Aren't these the Minno guys from Randall Stross's book? Didn't know they had pivoted.
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