A newly launched matchmaking site hopes to help seed-funded companies find the acquirer of their dreams. Or, at the very least, Exitround hopes to give young companies a better option than just shutting down.
Jacob Mullins, a senior associate at Shasta Ventures, says he launched Exitround as a marketplace for early-stage companies to explore strategic acquisition opportunities, but in a discreet fashion. Given the increased number of seed-funded companies, and how many are having difficulty raising Series A rounds, Mullins says he sees a lot of startup founders having to decide whether to cut the burn and bootstrap the business themselves, shut the doors entirely or find an acquirer. Thus, Exitround is a way for founders to explore the strategic acquisition option.
Meanwhile, the site could also appeal to corporations, which are intensifying their battle for hiring new talent, as the acqui-hire trend has taken off in recent years.
At Exitround, interested startup founders can log on to the site and anonymously list their company and its assets. Interested acquirers can sort through the listings by sector, location, amount of capital raised and number of employees. Mullins wouldn’t disclose membership details, but he says that prior to launch, he has called on a lot of corporate biz dev folk and worked with a number of startup organizations and advisors to draw entrepreneurs and acquirers to the site.
Mullins says Shasta is supporting him in his efforts to launch Exitround on the side, but he points out that he’s not leaving Shasta, which he joined nearly two years ago to work on consumer Web and mobile deals. He also says Exitround is not a Shasta initiative and is not affiliated with the firm. “No information will flow between the product and Shasta,” he tells peHUB. To date, he has launched the site using his own funds.
“Should things go well with the product and well-received in the market, I am interested in taking it more seriously and doing it full time,” Mullins wrote in an email to peHUB.
More information about the launch is on the company blog.
Photo of man inside a computer holding buy and sell signs from Shutterstock.