Most startups don’t have wildly successful exits.Lately, SVAngel’s David Lee says his firm has spent a good chunk of time helping entrepreneurs with soft landings and acquihires.
Yesterday he wrote about the two kinds of startup exits. They sound similar, but Lee says investors view the two differently.
A soft landing is only “soft” for entrepreneurs; investors tend to get no money back.
“The goal is to ‘softly land’ the employees and possibly, the assets,” Lee writes.
When a startup is acquihired, investors fair a little better. They get their initial investment back and sometimes more. Acquihired founders have negotiating leverage, Lee writes. Softly landed founders do not.
In both situations, its possible for an entrepreneur to get funded by the same investors in his or her next venture, says Lee. It depends how they behave during the exit.
For more of Lee’s thoughts on soft landings versus acquihires, head over to Daslee >