Early venture companies exit the transaction the five killer



yesterday (February 10th), tiger sniffing made an article about the start-up company was acquired after a large company, entrepreneurs how to deal with the relationship between the big company team to help the successful completion of the acquisition. Today, we would like to recommend to you an article on the start-up company through the purchase of several obstacles to exit the road. For those who are seeking to get through the acquisition of entrepreneurs to withdraw reference. This article from Venturebeat.com, compiled by Tiger sniffing:

early start-up companies have a lot of talented engineers, but not enough resources in other areas. The small size of the "acquisition of employment (acqui-hire) transactions (probably less than $10 million) but is usually considered a rare top talent in signing the employment contract, the details are not known to outsiders and the amount is not small; a large scale transaction often is" acquisition and formation (buy vs. build) "part the strategy, large companies can choose not only has been test team, but also get market recognition products, even on the R & D program critical products.

in the start-up company only "team" or "team and technology" in the background, many of the acquisition for the purpose of the transaction ultimately ended in failure. There are many reasons for the failure to exit the transaction, this article lists the author of the five most common witnessed in the entrepreneurial team:

an important founder, key employees (such as core Engineers) or investors do not support early exit transaction

the first question is whether the core developers / your technical personnel or other co-founder is ready to continue to spend time and energy in the company’s technology and business? The most important thing is, is willing to work together with the new club after the completion of the acquisition? In the early exit case, the acquirer will usually have the acquiring company’s founder, development staff and team strategy "as a part must be retained".

two, the company’s intellectual property did not get

in the business, the company should have the founder to contribute to the company’s intellectual property rights of any science and technology, the need for an effective and audited transfer agreement. The signed agreement will be based on the intellectual property rights of the company after the work of the current and past founder (for example, the invention of the transfer agreement and confidentiality provisions). Your team will also have to get a similar agreement from an independent contractor. Without a special assignment, the contractor will retain most of the intellectual property rights. It is also important to keep a record of third party confidentiality agreements, and many technology companies use computer software to do it.

best case: there is no need to disclose to the acquirer in the company’s intellectual property rights, or even if there is something to be disclosed, but also give a comprehensive explanation.

worst case: due diligence

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