The oddest thing in startup theater is the celebratory acquihire Medium post. The founders, investors, employees, and everyone surrounding it knows that it was a bad outcome, but the announcement is triumphant, so congratulations pour in from friends & bystanders. Brutal.
Admittedly no acquihires are good for investors, but some are good for founders; some include quite rich terms.
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I'm happy when a startup gets acquihired. It's always a failing startup, so the investors were never going to get anything anyway. At least this way the founders get something.
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Isn't acquihire always a way to circumvent the economics of actual equity ownership and disproportionately direct deal value towards founders? What do you think about rounds having non-compete clause barring founders from joining acquirers?
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I’m seeing ones where team is hired, founders move on to the next thing, and announcement gives the impression that it was a normal/great exit, and hundreds of friends/family respond with congratulations thinking the founders got rich. Outcome is fine, misconception seems tough.
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I can’t imagine being the founder sitting there. Every congratulations would be another drip of water in water torture.
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