I’m running a startup in Africa. We’ve raised $30,000/= USD from an early stage investor as a convertible debt. We’ve run out of runway and are living off our monthly profit of USD 2,500/=. We are a team of two each with salaries of $400 USD.
I’ve received an acqui-hire offer: the deal will involve the acquirer paying off our debt, and our monthly salaries in the new company will be $4000 USD for myself and $1200 USD for my co-founder.
Should we persevere or take the offer?
If your company folds the debt will just disappear, so that shouldn't even be part of your consideration. Unless the job at the acquiring company is especially compelling for you and your cofounder I would pass on the offer. You're already making a profit and you can cover your expenses.
I was in your situation not too long ago, and I stuck with it. Zero regrets. In the next two years your 2,500/= monthly profit may turn into 25,000/=. As long as you can keep your head above water (financially and mentally) you've still got a real shot at success.
Thank you :)
It really depends of the context. May you please tell us a bit more about the startup, industry, and of you two?