Hacker News new | comments | show | ask | jobs | submit login
Handybook Buys Exec in a Deal for the On-Demand World (bits.blogs.nytimes.com)
83 points by anrope 1468 days ago | hide | past | web | favorite | 21 comments

Since the acquisition was a 100% stock transaction (and the acquirer is still a private company), this is more of a "let's join forces" type deal than an exit arrangement.

But not quite a merger of equals. 12mn in handybook funding, 3mn in exec funding, 10mn rumored merger price.

That suggests to me that exec shareholders now own less than 1/3 of handybook but probably more than 10%. Assuming the 12mn in funding has bought exactly 1/2 of the company, then handybook's most recent post money would be ~ 24mn. 10mn in new stock --> 10/34 as the share owned by exec. Probably more than 10% bc that's the amount they'd own if handybook was valuing themselves at 100mn. I doubt that they are that high yet.

This looks to me less like a merger and more like a realization by exec that their value is at a global maximum -- once handybook cracks sf on their own the value of buying exec drops substantially.

In my opinion a shrewd move by all parties.

Completely agree with @thatthatis, but one separate thought.

> "talks began in October"

> "they [HandyBook] had a much better and well-defined marking model and they had already developed what we were trying to iterate, but better."

Is this related to the departure of the people behind the https://giveit100.com/ around then? The non-technical founder was responsible for marketing at Exec, for example. I could imagine were I in her shoes and heard this back then I also would be looking for new work.

Hi Ivan, I (along with Finbarr) are the co-founders of http://giveit100.com. I left Exec back in August and had no idea of the Handybook merger/acquisition until now. I learned a lot at Exec and am really grateful to have the chance to work there.

Is that better or worse than an acquihire?

I think that depends on (1) whose perspective we're looking at this from, and (2) what the future holds for the combined company.

In terms of liquidity and it being "a sure thing", an acquihire would surely be better for Exec. But Justin Kan already has a few successful endeavors under his belt and probably isn't hurting for a quick check. Increasing his odds for a homerun probably makes more sense. The same probably goes for the investors.

For the employees on the other hand, an acquihire and subsequent retention package would most likely have a better EV/Risk ratio.

Home services is an enormous market and handybook looks well positioned to be a name brand in the space. I think you're correct that this is placing bets on a homerun.

Congrats! From the end of the article:

> I’d like to try doing nothing for a while -justin kan

LMAO imagining that in justin's voice.

On Freund is doing a great job heading up the engineering team at Handybook as well. Really excited for those guys and their contribution to New York tech

Justin, congratulation on the company sale!

If you have a minute, I'd love for you to read this:


I know you can create more amazing companies in the valley, everyone knows that. But what I'd love to suggest is for you to take these next few months to check out what else is out there in the world.

The market opportunity won't be as big, but your experience and unbelievable drive for success (that's what I remember the most about you) can potentially make a much bigger impact in the world outside of Silicon Valley.

Here is my open invitation for you to visit Philippines, or anywhere else in 29 countries I've traveled to this past year. I promise we can mobilize the World Startup Report ambassadors network in every continent to make your trip a successful one. These folks will gladly host and take care of you, anytime, anywhere.

Please give this some thoughts... the world could use another superhero.


Thanks! I am interested in the startups in the rest of the world, especially in SE Asia. I just got back from a trip to Thailand and Singapore, where I talked to several startup investors, accelerators, and founders to try to figure out where market opportunities might be. I didn't get to the Phillipines on this trip, but hopefully will in the near future (planning Indonesia at the very least this year).

Glad to hear that Justin!

SE Asia is a very interesting market, people are solving a completely different set of problems that what we're used to in the first world countries.

We have a very strong network here in SE Asia. Don't hesitate to reach out to me on your next trip back. I'd be happy to show you what I've learned.

Congrats again!

Myanmar is going to be amazing if the elections in 2015 go well. I visited in November 2013 and would love to figure something out there.

>> Mr. Kan [...] said he planned to take a few months off after the sale.

Is it normal / common for founders to sell their company but not join the new parent company themselves?

Confusing headline if you don't know "Exec" is the name of a business. And how can anyone keep track of all the names of businesses around here.

The headline bookend in a Deal for the On-Demand World sounds like the writer ran out of intelligent things to say.

Congratulations Justin and Daniel.


Congrats to the Kan brothers!

Thank you!

Congrats! Awesome job.

Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | DMCA | Apply to YC | Contact