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Element AI sold for $230M, as founders saw value mostly wiped out: document

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Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#51

Post by qeternity »

musicale wrote: post #26
qeternity wrote: post #17

Earlier quoted context omitted.

Really good insight. When I put engineering job posts up, we get loads of PhD applications...a staggering amount. And all of these people look great on paper. It’s only when you start talking to them off script that you understand a career in academia has radically different incentive pressures than the private sector. We end up passing on most, not because they aren’t brilliant, but because they’re very one dimensio…

It must be surprising to find "brilliant" people who are apparently incapable of learning how to do new things.

I never said they were incapable of learning new things. But they're usually not applying for junior level roles where we expect to make these investments. They are typically applying for senior roles where the applicant is expected to possess these soft skills.

Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#52

Post by concreteblock »

qeternity wrote: post #51
musicale wrote: post #26

Earlier quoted context omitted.

It must be surprising to find "brilliant" people who are apparently incapable of learning how to do new things.

I never said they were incapable of learning new things. But they're usually not applying for junior level roles where we expect to make these investments. They are typically applying for senior roles where the applicant is expected to possess these soft skills.

In your opinion, what are the important 'soft skills' that

1) Academics lack

2) Are hard to pick up

E.g. another commenter mentioned Git. Many academics don't use version control, but I think learning how to do this to an acceptable level is not very difficult, so it doesn't really count.

I'm asking because I might be trying to get a job in industry soon.

Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#53

Post by 908B64B197 »

arolihas wrote: post #16
nrmitchi wrote: post #4

The actual title is "Element AI sold for $230-million as founders saw value mostly wiped out". This is an important difference, since the submitted title here implies they were entirely wiped out. It looks like this company raised ~$250M, and sold for $230M. This isn't any sort of nefarious "founders got wiped out"; they sold for less money than they raised and this is the typical outcome in that situation. Also, fro…

It also says ServiceNow agreed to hiring many of the employees in this deal so it’s not that catastrophic. Although yes their options aren’t even worth the paper they were printed on.

It's a real acqui-hire.

They basically acquired a world class AI team. Had they let the company die I'm certain most of the AI talent there would have been poached rather quickly.

Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#55

Post by 908B64B197 »

Apocryphon wrote: post #35

So much for Montréal becoming the Silicon Valley for AI. Another Canadian/non-Californian startup bites the dust.

The problem is AI is a tool to build a product. It's not a product in itself.

Element AI's product was it's talent (mostly all grads from MILA just next door) and the fact it's one of the few places where you could get as many great devs and deep learning experts in the same room.

But as long as folks focus on AI and not building an ecosystem or a product we'll see these acqui-hires.

Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#56

Post by 908B64B197 »

fierarul wrote: post #7

Not sure what the angle should be here. The founders didn't manage to raise the company; it was soon to be bankrupt. Of course the founders would be wiped out. Still, they have $300,000 worth of shares and "the buyer has agreed to pay US$10-million to key employees and consultants including Mr. Gagne and Dr. Bengio as part of a retention plan". Business doesn't always work out. Getting a cool $1M after trying and fai…

The company's value is in it's employees.

They have a world class expertise.

Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#57

Post by fierarul »

908B64B197 wrote: post #56
fierarul wrote: post #7

Not sure what the angle should be here. The founders didn't manage to raise the company; it was soon to be bankrupt. Of course the founders would be wiped out. Still, they have $300,000 worth of shares and "the buyer has agreed to pay US$10-million to key employees and consultants including Mr. Gagne and Dr. Bengio as part of a retention plan". Business doesn't always work out. Getting a cool $1M after trying and fai…

The company's value is in it's employees. They have a world class expertise.

That's not the market way of looking at it. How will a bankrupt company retain their world class employees? They are one missing pay-check and counteroffer away from moving elsewhere.

Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#58

Post by 908B64B197 »

fierarul wrote: post #57
908B64B197 wrote: post #56

Earlier quoted context omitted.

The company's value is in it's employees. They have a world class expertise.

That's not the market way of looking at it. How will a bankrupt company retain their world class employees? They are one missing pay-check and counteroffer away from moving elsewhere.

That's what I was saying.

The value of Element AI was that by buying it you get all the employees. Had they waited for the company to go bankrupt they would be competing with everyone else trying to buy the IP and the key employees.

Re: Element AI sold for $230M, as founders saw value mostly wiped out: document

#59

Post by fierarul »

908B64B197 wrote: post #58
fierarul wrote: post #57

Earlier quoted context omitted.

That's not the market way of looking at it. How will a bankrupt company retain their world class employees? They are one missing pay-check and counteroffer away from moving elsewhere.

That's what I was saying. The value of Element AI was that by buying it you get all the employees. Had they waited for the company to go bankrupt they would be competing with everyone else trying to buy the IP and the key employees.

This I agree with. The only value remaining in the company are its employees, not revenue streams, not products, just employees and potential.
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