Bought quite a lot of reactions to my final publish about acquihires (particularly, lack of them) and the way which may change the strategy startups take to pursuing ‘gentle landings.’ Needed to make clear and reply to a few of these questions, backchannels, and many others.
- It’s usually okay to only shutdown. I wasn’t suggesting that each founder/staff/buyers would favor an acquihire to different types of wind down, and undoubtedly not that founders all the time “owe” their buyers this try. If something I used to be making an attempt to emphasise to founders that it’s alright to strive a distinct course of, usually towards the frequent knowledge.
- To founders (some in our portfolio) who assumed I used to be particularly subtweeting them. Nope. After all the suggestion was spurred on by what I’m observing available in the market – together with quite a lot of tales from founders we haven’t backed – however I used to be commenting in the marketplace at giant.
- I don’t wish to fund an acquihire market. If you wish to construct a market for small acquihire transactions go proper forward however my publish wasn’t a Request for Startup 🙂
- Some folks disagreed with me! “Nah, you surrender all leverage once you do what you really helpful,” was the suggestions from just a few readers. My POV is that it’s extra nuanced than this. You don’t have any leverage – or at finest pretend leverage aka bluffing – once you don’t have alternate options. Go have some non-public conversations, float some trial balloons, and many others. However I really consider the technique I detailed is UNDERUSED in our business.
- Makes the Founder Appear Like a Loser? No manner. I believe it’s clever and considerate when achieved appropriately. All of that is altering IMO – analogous could be layoff lists lately – no disgrace in being included in a single when you recognize you probably did the most effective you can however the firm needed to make cuts. Clearly extra falls on the CEO/founder shoulders however once more, I believe my technique goes to be self-selecting for the kind of leaders who authentically can articulate the state of affairs and has some worth to transact.
Respect the dialogue – it’s why I get pleasure from running a blog 🙂
