

Ask PG: What Is An "Exploding Accelerator Offer"? - jcr

Yesterday on twitter [1] pg mentioned "exploding offers" from some
accelerators, and to be honest, I'm just clueless by what that means in
context. I've heard the phrased used in big company buy-out situations.
An example might be the proposed acquisition of T-Mobile by AT&#38;T having
a condition where if the deal didn't get approved, then AT&#38;T would have
to pay a whole bunch to T-Mobile (for the brand damage etc.).<p>Dan Shapiro (hn:danshapiro) submitted the tweet to HN yesterday during
the most busy part of the day for submissions, so it didn't get much
of a chance for up-votes.<p>This morning I woke up wondering what the heck an "exploding accelerator
offer" really is? How do they work? Is there yet another, umm,
"non-transparent" or "potentially risky" investment practice that
founders need to be aware of?<p>(Yes, I intentionally tried to phrase it nicely since terms and
practices are just terms and practices people/companies agree to)<p>[1] https://twitter.com/paulg/status/321657682761232384<p>[2] https://news.ycombinator.com/item?id=5520295
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sfrechtling
Well in most contexts, an exploding offer is an offer with a set deadline - as
in, an offer is going to "explode" (aka expire or be taken back) within a
specified timeframe.

Using this, I'm guessing pg meant that if applicants have got an offer from
another fund/accelerator/incubator that expires before they get an Y
combinator acceptance, they should let him know.

