TLDR:
- When startups struggle to raise funding, they may opt for an acqui-hire to avoid shutting down.
- Being acqui-hired can result in better pay, seniority, and career growth than joining as a lateral hire.
Selling a startup in an ‘acqui-hire’ situation may seem like a disappointing outcome for founders and senior employees who were hoping to build a highly valuable company. However, being acquired can actually be a lucrative opportunity from a financial standpoint. Companies that acquire startups often reward top team members with better jobs and higher pay packages than they could find elsewhere with the same experience.
Acquisitions in these situations are often referred to as acqui-hires because the main focus is on gaining access to the startup’s talent pool. This can lead to accelerated career growth for founders and key employees, with opportunities for directorial positions and higher seniority than they would typically achieve in a large tech company.
While acquisitions where investors don’t receive a significant return are common, they can offer founders financial rewards, long-term career opportunities, and the chance to launch another startup in the future. Founders who have been through the acqui-hire process emphasize that it shouldn’t be viewed negatively, as it can lead to a variety of benefits for those involved.
