11–17 of 17 posts
I would have thought the kind of people that build startups aren't always the type that would enjoy working at a company large enough to acquire them. What's the standard obligatory time a founder has to stay with the acquiring company? How many founders stay beyond that time?
24 months does seem to be the avg. term, minus let's say, 3 months ramping up and 3 down. Consider weekends and holidays, and companies are not getting much for their dollar.
I understand the company's need to compete in an entrepreneurial market, but the investment doesn't seem to be worth it on it's face.
Am I missing something?
I guess they'll try anything as long as it doesn't involve using remote workers or satellite offices in less expensive cities to attract other competent developers.
I agree this happens - a lot. But if it's a matter of supply/demand and engineers being worth "$0.5m - $1m" then why are we not seeing salaries for developers a lot higher? It would be a lot cheaper for Facebook to offer good developers $500k/year + options straight up rather than spending several million to buy a startup of a few devs, where a large %age of the purchase price is going to invetors and not the develop…
Its an expensive way to acquire talent but it can keep some known producers in your company for a while. Generally its good to look at how much funding went into a company before trying to analyze the per-capita numbers. Most VC's don't want to leave with just their money back or worse less than their money back (I've heard such deals being called a 'hair cut') So company A gets 10 million in funding and then gets ac…
Aren't these the same VC's who want to sell/flip your startup (instead of letting it grow) in order to pay their investor?
I agree this happens - a lot. But if it's a matter of supply/demand and engineers being worth "$0.5m - $1m" then why are we not seeing salaries for developers a lot higher? It would be a lot cheaper for Facebook to offer good developers $500k/year + options straight up rather than spending several million to buy a startup of a few devs, where a large %age of the purchase price is going to invetors and not the develop…
it's a one time payment (often in stock, which tends to be accounted for differently) and not a recurring $500k a year