Bruno Pedro:

Interesting thoughts about acqui-hires.

Originally posted on Uncrunched:

Sarah Lacy wrote about acqui-hires this weekend on Pando Daily. She got some things wrong.

The main problem is her argument doesn’t work on its face. The logic breaks.

She says that all the interested parties love acqui-hires – entrepreneurs get an easy out, buyers get engineers, and investors get a free pass.

But she also says acqui-hires have to stop. In the world she’s describing, which is a three party circle jerk, I don’t see where the pressure would come from to stop them.

In reality investors don’t like acqui-hires at all. An acqui-hire is marked down as a “fail” in the books. In almost every case we’d much rather have the entrepreneur keep fighting for a win even at very long odds.

That being said, we don’t complain about them or try to stop them. But some investors do and will. That’s why there has been academic…

View original 174 more words

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