Hello Everybody. Today we’re talking about the harsh reality of acquisitions. Many founders see acquisition as the next logical step if fundraising isn’t going well. The reality is pretty tough:
1. Unless you have strong demand from a very interested potential buyer, the vast majority of startups are not acquired; they simply fail.
2. Acquisitions take at least 6 months, usually 9. If you don’t have that kind of runway, the acquisition will likely fail taking your company with it.
3. Without a competitive process, most acquisitions are for less than what the startup raised. If you’re lucky you and your team get jobs.
Headlines often give a rose tinted view of startup acquisitions. The reality is usually very different.
Thanks a lot for watching and best of luck out there.
