Do you know what it means to be acquired?

Originally in Silicon Valley has whipped up a whiff of talent acquisition, Facebook, Google, Zynga are eagerly recruiting talented people, and usually the acquisition of talent is based on the number of pricing, the purpose of these Internet giants are usually acquired in order to obtain outstanding engineers And founders, but not for the product itself, then the start-up company, acquired by large companies in the end is good or bad?

If you are a startup company and your goal is to be acquired by a big company, your company acquisition is certainly a good thing.

Due to the scarcity of talented people, in some areas where talent competition is intensifying, such as social networks, high-priced acquisitions of talented people are usually made. In their view, there are really not many outstanding ones. There are certain benefits to large companies.

Engineers may buy as much as 500,000 to 1,000,000 U.S. dollars. The funds they buy are typically paid on stock and are mainly distributed to start-ups, employees and investors in startups. The acquisition of employees will get paid, even in most cases can get more stock options.

Since then, the entrepreneurial team can sit back and relax, without the hard work of start-ups, into the big company, working life is guaranteed, the pressure is smaller.

Acquisition by large companies is also a simple exit, 500 Startup founder Dave Macclure once said: "If the rapid growth of start-up companies, the average income of the acquisition of talent is better than no acquisition and, despite the millions of dollars in acquisition funds It does not make any difference to their fund, but it is a handsome income for engineers just getting out of college campuses.

Paul Graham, founder of Y Combinator, once said: "How old are we? And why should we stop young entrepreneurs from earning their first million in their lives?"

In addition to the material things, what have they gained? Reputation, when a startup is acquired by a big company, the media reports: "Wow, look at the company being acquired by a big company, "And so on, looks very bright, can be fancy to large companies, indicating that the startup company team has its value. When Facebook bought Instagram for $ 1 billion, I do not know how many enterprising entrepreneurial team, founder Kevin aura, everyone praise it.

However, if your original intention is not to be acquired, it is certainly a bad result to be acquired by a talent. It is a sense of failure to do things in vain.

Moreover, if the company was acquired, investors how to look? If you are acquired, and later want to start a business, then your journey may be more bumpy, at least in this investor, you go more difficult. Nick O'Neill investor made it clear that he did not like talent acquisition.

Talent acquisition is a symbol of failure. In many cases, investors would rather start a startup and try their best to succeed. It does not matter if it takes a long time. Many start-ups negotiate mergers and acquisitions without the consent of the investors to make their own decisions. As an investor, Nick O'Neill said he never saw which talent acquisition benefits investors. Both are loss.

Although it is mentioned above that both Paul Graham and Dave feel that starting companies should not be prevented from accepting talent acquisitions, it is only from an entrepreneurial perspective that they can materialize rather than claim the benefits to investors .

If investors are dissatisfied with this and want to continue venture financing, investors may add more so-called talent acquisition agreements to protect their own interests. At that time, your new startup will lose even more many.

And being acquired also means you're less likely to be a superstar on the Internet.