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The Corrosive Downside of Acquihires

Both Sides of the Table

The Aqui-hire Business. Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Usually the location of the engineers matters great so having offshore engineering makes acquihires unlikely. Let’s assume $2 million in seed money.

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5 Risks Of Buying A Business And Profiting Off The Opportunities They Create

YoungUpstarts

The opportunity: Use this as a negotiating point when bargaining for the deal. If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out.

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Acquihires 101: Tips for Founders

Scott Edward Walker

We have also recently handled a few “acquihires” (or “acqui-hires”) — which is a somewhat unique transaction, with a host of unusual issues. The appeal from the acquirer’s perspective is that – in one fell swoop – it acquires a team of engineers. How is the Deal Structured?

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The Pre-Seed FAQ

K9 Ventures

Unless every aspect of product development is covered by founders who are only receiving equity, there are other parts of building a product that will require hiring highly qualified people. Q: How are most Pre-Seed deals structured? Engineering Capital. I’ve written about this on the K9 Ventures blog. Precursor Ventures.

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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. HappyFunCorp employs 80 engineers and product architects. What are the terms of their relationship with the founder?

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

All Earnest investments are made using the Shared Earnings Agreement (SEAL) – a custom salary/profit share structure, aligned with how most bootstrapped founders are compensated. The fund specializes in “micro-SAAS,” often investing to help the founder go from part-time to full-time on their business or make a key hire.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. To understand when the business has started to climb the sales learning curve and is in a position to hire more reps profitably, you have to think in terms of CMRR instead of bookings.