
RNTS Media buys mobile ad network Heyzap (YC W09) for $45M - quickfox
http://venturebeat.com/2015/12/23/rnts-media-buys-mobile-ad-network-heyzap-for-20m/
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ramoq
They had $13MM in annual revenue (in 2014) and were acquired for $45MM
(~3.5x). Interesting.

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nedwin
They will end the year with $20m revenue and the deal is $20m cash plus
incentives. So effectively a 1x deal at the outset, rising to 2x if they meet
performance and retention goals.

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danieltillett
Me thinks the future is not looking too bright.

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sharpshoot
Congratulations to Jude & Immad on getting to exit. They are some of the
hardest working entrepreneurs I know. And it wasn't plain sailing.

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x0x0
This seems like a weird acquisition given HeyZap's claims they were profitable
since mid-2014.

In the spirit of numerous recent articles, given they raised $8m and were
acquired for only $20m cash, this sounds like a bust for everybody but the
founders. For example, a 1% pre-A options package fully vested would probably
be diluted to roughly .2% (or less!) and is worth $32k. Pretax. Yes there are
earnouts but I haven't heard of too many of those being paid.

Also, I hold shares in a private adtech company. The valuations of the handful
being acquired or going public aren't propitious for me.

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serge2k
But I'm sure those employees were paid a high salary, so the mediocre return
is fine. Right? Right? They totally made more money off this startup than just
working at someplace bigger.

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frisco
Seriously though, you don't get it both ways. There's been this backlash
against startups paying below market on the promise of equity, so then many
startups in reality do start paying at or above market, and then people are
still unhappy when things like this happen. This is a side effect of the
increased cost of labor which makes many startups less viable. Silicon Valley
doesn't run on "screw you pay me". At or above market salaries are a huge cost
to startups to the detriment of their equity, and so honestly I'm not too
upset about employees who have been making market salaries not getting much
out of an acqui-hire. Hopefully the ones who were in the trenches with the
founders will be rewarded, and if it's the case here where that's much of the
team, then hopefully there's an earn out structure that provides that if the
acquirer is trying to manage the acquisition risk.

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habith
> many startups in reality do start paying at or above market

I think that's the key phrase here. I don't know if they paid at or above
market rate and that would be where I'd start looking before passing
judgement.

Your company's job postings suggest "competitive salary and meaningful
equity", which is a much better signal than Heyzap's posting[0] i.e. no
mention of compensation whatsoever (I personally prefer a salary range to know
if the discussion is even worth our collective time).

They're a small startup so the data is incomplete and meaningless, but
assuming the one salary posted on Glassdoor ($65-75k for a marketing manager)
is accurate, I think it's fair to say that their compensation package was
quite low and heavy on equity.

> I'm not too upset about employees who have been making market salaries not
> getting much out of an acqui-hire

I completely agree with you. If you're getting market or above market salary
then equity shouldn't be an issue whatsoever.

[0] [https://www.glassdoor.com/job-listing/software-engineer-
heyz...](https://www.glassdoor.com/job-listing/software-engineer-heyzap-
JV_IC1147401_KO0,17_KE18,24.htm?jl=1162901135)

[1] [https://www.glassdoor.com/Salary/Heyzap-
Salaries-E493011.htm](https://www.glassdoor.com/Salary/Heyzap-
Salaries-E493011.htm)

~~~
phamilton
If any startups pay high market salaries, it's in ad-tech. There's little "I
believe in the product" and frequently tech is boring. The only redeeming
quality is they pay well.

That said, this doesn't seem like a successful exit.

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zump
It amazes me that someone would be interested in creating a startup for this.

