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Acqui-hires

Acqui-hires

Newsweek Daily Beast CEO Departs for Lerer Ventures

Formerly of. (Photo: FontShop

Newsweek Daily Beast CEO Stephen Colvin has decamped from his publishing bastion to take a gig as executive-in-residence at Lerer Ventures. As VC titles go it’s one of the less well-defined, but an announcement from the firm offered a little detail, saying that Mr. Colvin will offer “strategic input” to the tech startups in the Lerer Ventures’ stable.

Hey, we can think of one startup in particular that might be able to use Mr. Colvin’s know-how–NowThis News, the viral video network currently being cooked up downtown. Read More

Acqui-hires

eBay Acquires NYC-Based Social Shopping Site Svpply

Mr. Pieratt (Photo: Brooklyn Beta)

eBay announced on its blog today that it has acquired Svpply, the NYC-based social shopping site that curates personalized collections of clothing and products. Located on Broome Street in Soho, Svpply raised $550,000 in seed funding back in 2010 from investors like Founders Collective, Spark Capital, SV Angel, Dennis Crowley and Jason Hirschhorn. Since then, Svpply has been bootstrapping itself to 620,000 product views per week and 140,000 registered members (as of May).

Last May, founder Ben Pieratt offered a candid perspective on first-time entrepreneurship, admitting his vulnerability. “I have zero experience or expertise in building a company,” he wrote in a 2011 blog post. “So I’m learning on the fly.” Read More

Acqui-hires

What Obligation do Startup Founders Owe Their Investors?

What did you sign?

This is a guest post from Eric Wiesen, a general partner at RRE. It originally appeared on his blog.

The recent acquisition of Gowalla by Facebook is just the latest incidence of the potential tension between investors and founders when a company is acquired primarily for the team rather than for the technology, product or business that they’ve built. People around the web will take the opportunity to observe that in situations where a company is acquired in this way, the founders typically get a package of equity to motivate them to join (and remain at) the acquiring company, while investors usually get anywherefrom zero to a small return on invested capital. Look around and you’ll find people willing to condemn the founders for unethically “selling out” their investors and you’ll find people who say the exact opposite, that such a company didn’t have saleable assets anyway, and so investors are owed nothing because the business failed. Read More