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.
> "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.
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.
> I’d like to try doing nothing for a while -justin kan
LMAO imagining that in justin's voice.
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.
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.
Is it normal / common for founders to sell their company but not join the new parent company themselves?