Live data from Hacker News

Exploding Offers Suck

blog.ycombinator.com

41–50 of 178 posts

Re: Exploding Offers Suck

#41
post #24

A dear friend and excellent negotiator told me that when he gets any kind of short-term exploding offer, the first thing he does is verbally reject the deadline. And the second thing he does is ignore the deadline and offer feedback only after it has passed. I've seen him employ this many times in practice and it has always worked out. I don't want to be responsible for anyone losing a deal, but remember: when someon…

> when someone offers you an exploding offer, it's because they really, really want you to take it. Couldn't it be because they've got a lot on their plate and after a certain period of time they want to free up their brain cycles and stop wondering if you're going to accept that deal? Couldn't it be that you're barely preferred and making the deadline shows them that you're excited about the offer? Missing the deadl…

Just from the context of term sheets, exploding offers are usually because the firm wants the deal to close before other people are able to negotiate.

Re: Exploding Offers Suck

#42

It's a little different for a lot of other accelerators. YC takes batches of, what? like 40 companies or so in a batch? Most other accelerators are smaller with class sizes around 10. If YC is shooting for 40, and gets 37, it's maybe not a huge deal (8% under target). You could even make 42 or 44 offers and plan for a certain acceptance rate, end up with 44 probably isn't the end of the world (110% capacity). If anot…

I agree. Also, it is not like they house the people, which is more complicated that office hours. In this case, they are talking a negative about YC and spinning it into a positive.

Re: Exploding Offers Suck

#43
There's a balance between "exploding" offers and hang-around-forever offers. You don't want someone to come back 6 months later and say they're finally ready to accept your offer.

Its not difficult to balance these factors. Just ask, "how long do you need to consider this deal?" "Two weeks? Four weeks?" "If you need more time, just give me a call."

Re: Exploding Offers Suck

#45

I got an exploding offer for employment and came to the same conclusion. The company is called Loyal3: https://www.loyal3.com/ Steer clear of them. "Senator? You can have my answer now, if you like."

Employment offers tend to be exploding because a company has a single need and doesn't want to lose every candidate because they are waiting for their top choice.

Almost every offer of every kind 'explodes' at some point. It's the duration until the explosion that varies. I'm sure YC will make you reapply for future consideration, just as companies can not be expected to honor your employment offer if you defer for a year.

Re: Exploding Offers Suck

#46
post #22

Earlier quoted context omitted.

This post exemplifies why you don't take legal advice from strangers on the internet.

Is there case law that shows verbal acceptance of contracts are legally binding?

yes, I found this by googling "case law breach verbal contract": http://lepinelaw.com/wordpress/2013/02/06/winning-oral-contr...

Re: Exploding Offers Suck

#47
post #22

Earlier quoted context omitted.

This post exemplifies why you don't take legal advice from strangers on the internet.

Is there case law that shows verbal acceptance of contracts are legally binding?

Yes. There's lots of caselaw that says verbal contracts are legally binding. But verbal contracts are a legal clusterf#¢&. Always always get your contracts signed in writing and you will save tons of $$$$ on lawyer fees.

Re: Exploding Offers Suck

#48

A dear friend and excellent negotiator told me that when he gets any kind of short-term exploding offer, the first thing he does is verbally reject the deadline. And the second thing he does is ignore the deadline and offer feedback only after it has passed. I've seen him employ this many times in practice and it has always worked out. I don't want to be responsible for anyone losing a deal, but remember: when someon…

"A dear friend and excellent negotiator told me that when he gets any kind of short-term exploding offer, the first thing he does"

As someone who considers himself an excellent negotiator (and gets paid to do negotiating) [1] I'd really caution someone from employing a technique that someone else uses that you don't have experience with. Negotiating is all nuance it's not engineering or an exact science. Go try and read a book on it if you want. (I can always tell someone who is fresh from reading a book.)

Actually exactly for this reasons:

"I don't want to be responsible for anyone losing a deal"

Of course, it's easy when someone else is taking all the risk.

"when someone offers you an exploding offer, it's because they really, really want you to take it."

Could be. But there are cases where this is not true. How lucky do you feel in interpreting all the signals based on a limited time as a negotiator?

And getting back to what Sam has said:

"Sometimes they say they have a fixed amount of desk space, but in practice, if a good company wants to join late, they always make room."

Things are never always clear cut. Very possible your company is borderline and you don't fall into a "must have" category. By even YC's own thoughts there are many more qualified companies than they can accept. Not everyone is a superstar that can write their own terms.

"Any deadline claim has to be concrete and believable."

How so? You ask them? You investigate? You poke around? General advice the specifics are much harder.

In any case the last thing you want to do (according to at least my method which might differ from another negotiators method) when you are negotiating is tip your hand. And if someone is bluffing the last thing you want to do is let them know or that you think that they are bluffing. As such saying anything that sounds like "prove it" is certainly a way to do that.

In negotiating often people claim something that isn't true and bluff. It's part of the game. The idea is not to make them prove it. The idea is to figure it out on your own and use it to your advantage.

[1] It's a game.

Re: Exploding Offers Suck

#49
post #6

It is pretty clear to see whats going on: It is without question that most people applying to incubators apply to a few of them, in case they don't get into the (obviously) best one, YC. Its my guess that some of the less exciting incubators give these exploding term sheets to make the founder think: "Damn, I got into Incubator X but I have to say yes in 48 hours. I wonder if I will get accepted into YC also when ans…

"in case they don't get into the (obviously) best one, YC."

How exactly did you determine that may I ask?

Re: Exploding Offers Suck

#50
Most exploding offers don't represent credible threats. That being said, if someone jumped at one of my exploding offers, I'd definitely try to negotiate a better price ex post facto given my read that the counterparty is so jumpy.
Post reply on HN