Garber: Acquirers stall low-runway startups to buy them at 10% of value
Scott Garber · 9 - Empowering Founders to Win with Early Light Ventures Managing Partner Scott Garber · Dec 5, 2024 · at 18:37
Scott Garber, Managing Partner at Early Light Ventures, discusses common founder mistakes around cash burn, runway management, and distressed M&A negotiations.
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“And the M&A, the real smart M&A people are saying, okay, yeah, let's kick some tires and we'll go for a test drive and we'll look over everything under the hood. And then they realize, okay, you're basically running out of money. I'm just gonna, again, same thing. I'm gonna let you run down to basically nothing. I'm gonna give you a really predatory offer and your board's not gonna want to do anything about it. And I'll get you for 10% of what you're worth. And I see a lot of that happening.”
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