Sometimes, an acquihire is just a hiring. if there's any cash for the founders, it's on the order of a generous signing bonus. The founders are expected to work real jobs in the acquiring company, and sometimes the payouts are tied to golden handcuffs.
There's nothing wrong with consenting adults agreeing to such a thing, but that would not, in my books, be a "successful exit" unless the founders had planned all along to use their startup as a job-seeking vehicle.
Of course, the other end of the scale is a substantial payout, much larger than any imaginary "hiring bonus." The founders get jobs or consulting gigs with the acquiring company, but that's mostly structured to prevent them from immediately quitting and sending a signal to the market that they hate the acquiring company.
They need only attend a few meetings over the next year of their contract, and can work on their next project in stealth mode. That's an "acquihire" and a successful exit at the same time.
Between those two extremes, there are varying degrees of "successful," and "exit." I don't think it's as simple as "equity is worth more than zero equals successful exit," especially if you don't have the freedom to do WTF you want the moment the ink dries on your signature.
Sometimes, an acquihire is just a hiring. if there's any cash for the founders, it's on the order of a generous signing bonus. The founders are expected to work real jobs in the acquiring company, and sometimes the payouts are tied to golden handcuffs.
There's nothing wrong with consenting adults agreeing to such a thing, but that would not, in my books, be a "successful exit" unless the founders had planned all along to use their startup as a job-seeking vehicle.
Of course, the other end of the scale is a substantial payout, much larger than any imaginary "hiring bonus." The founders get jobs or consulting gigs with the acquiring company, but that's mostly structured to prevent them from immediately quitting and sending a signal to the market that they hate the acquiring company.
They need only attend a few meetings over the next year of their contract, and can work on their next project in stealth mode. That's an "acquihire" and a successful exit at the same time.
Between those two extremes, there are varying degrees of "successful," and "exit." I don't think it's as simple as "equity is worth more than zero equals successful exit," especially if you don't have the freedom to do WTF you want the moment the ink dries on your signature.