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Don't start a startup with the goal of getting acquired

raymondyxu.com

11–17 of 17 posts

Re: Don't start a startup with the goal of getting acquired

#11
post #8

I imagine most people that get into entrepreneurship do so precisely because they don't want to go work for someone else.

Or they want to get bought out with enough money that they don't have to work for someone else.

one of the things that early founders don't understand about acquisition though is that getting bought out in an acquihire usually precisely involves working for somebody else

Re: Don't start a startup with the goal of getting acquired

#12
post #3

If you want to make money, work in big tech. If you have an insatiable itch to build something (product, business), start a company or startup.

The middle ground is compelling too. Join someone else's startup, but only if it looks promising.

Small and medium sized businesses can represent an optimal solution once you factor in the influence you can have at this scale.

If you are truly gifted at what you do with technology, the SMB route is the best bet. The extremes of solo and mega corp will wear you down in their own special ways - doing too much and doing too little.

Re: Don't start a startup with the goal of getting acquired

#14
post #8

Earlier quoted context omitted.

Or they want to get bought out with enough money that they don't have to work for someone else.

one of the things that early founders don't understand about acquisition though is that getting bought out in an acquihire usually precisely involves working for somebody else

For a few months to a year, doing f* all, and then simply leaving.

Re: Don't start a startup with the goal of getting acquired

#15

I imagine most people that get into entrepreneurship do so precisely because they don't want to go work for someone else.

I worked for a startup in the late 90's founded by 4 college friends that just wanted to build cool stuff. None of them wanted to actually be CEO so they sorta rotated the job between them every few months while they built. Eventually they needed a dedicated person at the helm to handle CEO things so they hired a guy that was a VP at Microsoft at some point. The company was sold off within 6 months and everyone was gone.

Sometimes entrepreneurs have good intentions and just get fucked over.

Re: Don't start a startup with the goal of getting acquired

#16
post #15

I imagine most people that get into entrepreneurship do so precisely because they don't want to go work for someone else.

I worked for a startup in the late 90's founded by 4 college friends that just wanted to build cool stuff. None of them wanted to actually be CEO so they sorta rotated the job between them every few months while they built. Eventually they needed a dedicated person at the helm to handle CEO things so they hired a guy that was a VP at Microsoft at some point. The company was sold off within 6 months and everyone was g…

It sounds like that was a good outcome, they sold out and got rich? There's definitely a stage that comes where a startup no longer needs founders.

Re: Don't start a startup with the goal of getting acquired

#17
post #8

Earlier quoted context omitted.

Or they want to get bought out with enough money that they don't have to work for someone else.

one of the things that early founders don't understand about acquisition though is that getting bought out in an acquihire usually precisely involves working for somebody else

True, my last startup got acquired and it still has the same CEO and CTO.
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