Startups Anonymous Est. 2013 · Read-only archive
Questions

What’s a reasonable split for financial/sales vs. product dev in a new venture?

I’ve been working on this project for quite some time, but could not get funding. Now I’m being offered to get acqui-hired into a startup with the same vision, but whose founders are totally non-technical but can supposedly raise money.

Obviously without the money, I couldn’t go anywhere. But without my product and my team, this company has literally nothing – not even a name.

Neither side has revenue, neither side has “sex appeal” (successful exits, tech titan VPs, etc).

What kind of pre-investment split should I shoot for?

5 answers from the community

AAnonymous· Nov 20, 2014

Its not an acqui-hire if acquirer needs your product. In a traditional acqui-hire the price is seen more like a generous hiring bonus.

If you're going into it as a team and building totally new stuff I would see it more as a new startup but with a premium on your team since you guys have shown you can build a product.

AAnonymous· Nov 20, 2014

Fuck em. Join me and together we will rule the world, or at least the world in our minds, or just the world in your mind (stay out of mind god dammit).

AAnonymous· Nov 20, 2014

I sincerely recommend you to keep going on your own for a bit longer. If you can't convince an investor then there could be one of two things happening: either the project is no good, or you simply can't explain its potential well enough. In case of the second option, try getting a friend that understands your project come with you to your next meeting with an investor. If he can be a finance or accounting person would be preferable. Good luck!

-JPMIAz

AAnonymous· Nov 21, 2014

Only a large corporate or a con artist can propose you an aqui-hire. Think about it: you have a product, skills, and you need money. They have no product, no skills, no team, no money, nothing. They pretend they may raise money, maybe, perhaps, one day, with luck, if god wishes... This is XXL bullshit. They just want you, your work, your skills, your team and your product for free. Why would you become their slave ???

AAnonymous· Nov 21, 2014

This. Or they have the money before the agreement, or you will have a bad time...