Early stage startup acqui-hire: will it hurt being able to raise funding in future?


1

If an early stage startup, that has raised a seed round from angels, decided to get acqui-hired by another company. Will that hurt the founders' ability to raise money for a future venture?

In an acqui-hire, the investors always end up losing their investment. It's mainly the founders that benefit in the form of a large sign-on package by joining the acquiring company.

Would getting "acqui-hired" put one at a significant disadvantage to raising VC money for a different venture?

Venture Capital Acquisition Investors Angel Investors Acqui Hire

asked Sep 11 '14 at 15:25
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Samuel Olvera
6 points

1 Answer


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On the contrary, an acq-hire is still perceived as a positive exit. Not amazing, but better than "we built something and no one ever cared".

Investors will think that you already got some experience under your belt, and whatever startup you do next is likely to be more successful than an acq-hire. That usually means a real acquisition. So yes, investors will definitely want to hear from you.

answered Sep 14 '14 at 22:16
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Alain Raynaud
10,927 points

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Venture Capital Acquisition Investors Angel Investors Acqui Hire