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

raymondyxu.com

1–10 of 17 posts

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

#4
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.

That is certainly true. There is a subtle difference between building a company that becomes attractive to acquirers and building one with the primary goal of being acquired. If the latter drives your decisions, you may optimize for acquisition criteria rather than customer value, which can take you away from PMF.

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

#5
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Re: Don't start a startup with the goal of getting acquired

#9
In my experience, I would say don't register your startup until you have MVP. Before that getting acquired is a Fata Morgana. Nobody buys a company that is not proving successful or owning a valuable technology. And even if you set out wanting to be acquired you may end up not wanting to sell if you product is doing well. The better advice is to keep investors to a minimum as long as possible, because they will drain your share value and you may end up with far less money that you worked for.

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

#10
post #6

Thought there would be something interesting here about building for key gaps in a specific market vs innovating and finding long term product market fit. But all I see are simple made up stats and high school guidance counselor level advice.

You'd be surprised at how many startup founders don't calculate the probabilities of different outcomes and are not at all aware of said high school guidance counselor advice
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