Friday, April 19, 2024
Startups

Deal Dive: Why this startup chose to sell itself over raising a Series A

Not all startups are built for a billion-dollar exit — or to grow as a stand-alone company at all.

The appearance of easy-flowing subsequent funding likely led to the intense funding swell of the few years leading up to 2022. This is not to say all these companies are bad by any means! Many of them have customers, which proves that they’re building something people want; some businesses likely even have meaningful revenue.

On the other hand, some of them will realize that without an abundance of venture funding, their business model won’t be successful on its own, and they will have to come up with a new plan. Heroes Jobs was one of them.

The San Francisco-based startup launched in 2018 to create a LinkedIn for Gen Z: a more informal way for companies and potential employees to connect using video and making a platform that resembled TikTok. The company just announced that it had been acquired for an undisclosed amount by JobGet, an hourly job marketplace startup that has raised more than $50 million in venture funding.

Heroes Jobs co-founder and CEO Cyriac Lefort said that despite the company having a signed term sheet for a Series A, continuing to raise venture funding as an independent company no longer made sense.

Deal Dive: Why this startup chose to sell itself over raising a Series A by Rebecca Szkutak originally published on TechCrunch

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