Casado: Wave of AI acqui-hires is net positive for VCs
“We're actually seeing historic amount of M&A for basically aqua hires, right? That you like, you know, really good outcomes from a venture perspective that are effective aqua hires, right? So I would say it's probably net positive from the investment standpoin…”
Sam Lessin: Tech acquirers now buy distribution and growth, not technology
“People will buy distribution. They'll buy good businesses. They'll buy a growth curve. They're not going to buy technology, right? The aqua hire era is long over because everyone's just figured out that they can just, it's just easier to eat, just buy the tale…”
Nguyen: Big tech acqui-hires engineering teams, while growth startups acquire founders
“Large companies are not really excited about bringing on someone that has a high chance of turnover. And it's just kind of come in and like disruption. And they were much more excited about bringing in like a, you know, a multiplied
Team multiplier team that'…”
Perret: Reverse AI acqui-hires will not work for contract-heavy enterprise businesses
“We did see some of these, like, odd, like, acqui-hire, like, large AI acquisitions, which have been fascinating, but I don't think that works with a company that has tons of contracts that they actually want to transfer over to the acquired company.”
Beykpour: Small acqui-hires accelerated cultural change and speculative product bets at Twitter
“One of the things we found
That was a really effective way of accelerating cultural change and also helping drive some of these product initiatives that were particularly speculative was doing small acquires.
And really the benefit of that was a, you bring i…”
Sikand: Most startup acquisitions are structured as acqui-hires
“It is very rare that a company is acquired without some kind of aqua hire structure, right?”
Bonzom: Southeast Asia tech M&A will remain limited to cheap acqui-hires
“So you may have more, very opportunistic, and it looks like more a key hire for a very cheap price, so you may get those kind of acquisition in the next few months. But very large one is, no one is, With so much troubles to run the company these days, the publ…”
Caldwell: Effectively no startup gets acqui-hired after running out of runway
“No one gets acquired effectively. Like there's an asterisk next to no one. But the companies, of the companies that attempt, when they're lower on runway, they're, they flew the plane into the side of the mountain. There's no acquisition coming, man.”
Prince: Cloudflare's acquisitions are small acqui-hires under ten people, not revenue plays
“Most of the acquisitions that we've done have been aqua hire types of acquisitions. I think we've done two that have had A little bit of a technology component to them, but again, still very, very small teams, 10 or fewer people as part of that nothing so far …”
Marini: Acqui-hires prioritize employee retention, leaving early investors with pennies
“In an acqui-hire, the acquiring company, they don't care about the investors, right? They only care about retaining the employees. Therefore any kind of cash compensation that's going towards the acquisition is going to be earmarked for the employees, and the …”
Jeff Seibert: Acqui-hires are bad from a startup perspective
“Not a fan. In they're pretty good from the larger company's perspective, because you get a team for a relatively low price that you know works well together. And that you can't undervalue. From the startup side, I'm not a fan because I'm, I deeply believe in s…”