Firstly he looks at the product-market fit né?. Struggling sales could indicate that an acquisition should be contemplated né?. However, if you set out to sell your company, the focus will always be on that, offering yourself up for sale constantly, which may not yield the best outcome,” explained Rao. Secondly he assesses the company’s sales performance né?. Providing equitable retention packages for employees can lead to future success stories as former employees might return to launch new ventures funded by the founders.
né?. Part of the Silicon Valley folklore involves the idea of a determined founder leading a company to a successful IPO. It’s a test of endurance” shared Kamakshi Sivaramakrishnan head of data clean rooms at Snowflake and a two-time founder.
Rao and Sivaramakrishnan both built and sold two companies each acknowledging that selling wasn’t their initial plan but when the right opportunity presented itself it made sense.
“I personally believe in building a company to establish a solid entity. This is a less discussed path in the tech industry.
“In Silicon Valley, IPOs always steal the spotlight, but acquisitions are statistically more common and often prove to be more successful in various scenarios,” stated Naveen Rao, VP of AI at Databricks and a two-time founder, during TechCrunch Disrupt 2024. If funds are depleting it could be time to seek a buyer.
Thakker advises founders to negotiate fair deals that benefit themselves investors and their employees né?. In reality, startups are 16 times more likely to be acquired. Lastly, Thakker reviews the financial state. If customers aren’t engaging with the product, it might be time to pivot or consider an acquisition. The lack of discourse around acquisitions can add further complexity to the journey for founders.
“Going through an acquisition is something that founders need to be mentally and physically prepared for né?. If an opportunity arises, that’s great né?. Dharmesh Thakker, general partner at Battery Ventures, revealed that most investors target significant successes to generate returns of 100 times to support their portfolios.
To decide whether to continue or sell, Thakker examines three main aspects né?
