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The value of most FAILED startup can be salvaged from the team, you will never see a startup with a valuable/popular product gets acquit-hired. Sure, the team has value as engineers, but a company that keeps failing with their products and keeps "pivoting" puts doubt on the value of their founders as entrepreneurs (they may still be brilliant engineers). VCs like to invest in entrepreneurs (especially entrepreneurs who are also engineers). So the quality a VC looks for from a team is drastically different than the quality a bigger company looks for when they acquihire a team.

Since most startups fail wouldn't this make the parent's comment true?

Not if you go by investment returns...

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