I just finished #startupep11 and here's my thought about everything happened.

not talking about any ship

Keyword: Alex, The Twins, Samsan Tech, Acqhire

#startupep11 started with Alex & the twins from Injae Company.
The twins showed an article about Alex, actually, is "scouting top talents" for 2STO.

His position in 2STO is the new head for 2STO's Korean branch.

The twins indirectly offer themselves to work as engineer under 2STO. Their only reason is obviously bcs 2STO is an HQ in Silicon Valley and to work there must be a huge deal.
Then, Alex asked "can you ditch your team?" The twins, easily, answered "of course".

Their 'shocking' response about ditching their team (Injae Company) is actually not surprising.
Back to #startupep5, the trio explained briefly about the twins have been doing.

They don't have any interest to start a business - (cont)

(...) with their God-knows-how-much their cash prize now with all competition they have won, they don't even start a start-up with their strong potential.

Now back to current episode.

Here we are with Dosan approaching Alex.

A little throwback to #startupep10, Dosan overheard Jipyeong's offer to Samsan Tech. He made sure to them (specifically to Dalmi), IF there is no company want to be their investor, he will be their plan B: being their 'angel investor'.

Angel investor: an INDIVIDUAL who funds startup. The investor usually got from the startup's ownership equity or share - depends on both deal.
Angel investor ONLY fund them on the early stages, until they got some company to invest in them.

Now, back to the current episode.

Dosan brought back Alex's offer about 2STO will give Samsan Tech wings.

So, what is actually Alex's offer? (Bear with me, we gonna go back again to #startupep10)

In #startupep10, Alex discussing about his INITIAL offer to Dosan.

He wanted to HIRE Dosan as 2STO's engineer. Means, he will work at 2STO HQ in Silicon Valley, SF.

Alex ensured Dosan that his work offer would be great because "(having) a working experience in 2STO can change your company's future. Investors will line up with money."

Anyone feel deja vu here? No matter if you do or not, we have to go to #startupep7 for a bit.

In #startupep7 when Dalmi & Dosan approached Morning Group to propose their AI project for the company.
But instead, Injae's step brother, who is also his dad's right hand, just ask them to do some part time job, not as developer.

Dalmi & Dosan went to the CEO's office, asking about their 'rude' offer to them.
The CEO easily indirectly told them that their "work experience as 'part timer'" and putting logo on their website as strategic partner would worth 50 billion won.

Sadly, this clearly said that just like people who need strong resume to apply jobs, so does startup company.
It is their 'resume' for proposing companies to invest.

Back to #startupep10

With this much compensation offered (u can see on the first pic), Dosan still rejected Alex's offer.

Then he offered Dosan can come back to Samsan Tech after 3 years working for 2STO - which, this will be Samsan Tech's wings.

At the end, Dosan rejected it.

Now we are back at the current episode #startupep11
It turned out after couple of rejection from Dosan, Alex's offer is still available.
Dosan decided to accept Alex's offer because he stated that he "doesn't want plan B" - means he doesn't want Jipyeong's offer.

But.....

Dosan asked Alex to "take the entire Samsan Tech team"

At first, I thought "did dosan know what is he saying??? Did just say you want to sell your company???"

Turned out, he clearly know what is he saying - but doesn't know clearly what Alex is actually offering

Long story short, after Samsan Tech's successful presentation and winning the Demo Day, we jump to the day of acquisition discussion between 2STO & Samsan Tech.

Dalmi, as the CEO, unfortunately didn't review their contract thorough. She passed the contract to Saha.
Then, she asked how much will 2STO gonna pay for the acquisition, and Alex said this much:

Hearing 3 billion won might have made all 5 surprised - too high that they forgot about their company's 'identity'

We all know Samsan Tech's current innovation is NoonGil: a mobile app for visual impaired people.
Vision and mission's wise? 100% great.
But financially? Not to be hopeless, but the reality, this great innovation doesn't bring much income.

We all realized apps, for example: transportation, e-commerce, or even free games have their own strategy to bring income for the company. The most common way is to put advertisement.

But NoonGil? Their mission is to help the visual-impaired - so no way they will use ad.

Plus, they use Youngsil, a product owned by other startup. Samsan Tech should also pay to Youngsil owner.

It is, like Jipyeong said, unprofitable. A true sad reality.

Jipyeong who just go back to work, is surprised by the 'acquisition' news.

We still don't know what does the contract really say, but we know from Jipyeong & Saha that there is no problem in the contract.
But Jipyeong does know clearly what is Samsan Tech's value, worth, product and such. He is confused abt why, an unprofitable company, bought by 2STO.

Turned out, this might be, or even is, an 'acquihire'. #startupep11

Acquihire is combination of 'acquire' + 'hire'.

A method where a big company buy startup company (to ACQUIRE the startup), then they HIRE people who are working for the startup, to work FOR the big company.

Simple difference between 'acquire' and 'acquihire': #startupep11

Acquire: company A buy out company B - B's products are still being produced & it's owned by A.

Acquihire: company A buy + hire company B - staffs of B work for A, while B's products are (possibly) discontinued.

With a deal worth of 3 billion won, the second Dalmi & Dosan signed the agreement, they are not free.

Their dream to build big resort, a house with a big yard to play with his dog, or even start a new business, will not be happened easily - because they have to work for 2STO.

And NoonGil's fate? It's highly possible will be discontinued since this acquihire transaction is only to 'buy' the people inside Samsan Tech, not for the product and service they offered.

It's clear from the beginning that Alex only want to recruit Dosan as 2STO's engineer.

But does Alex also want to hire the rest of them?

....judging from the preview, it's highly possible he will still hire Dosan only.

conclusion

This acquihire transaction is apparently common for startup companies. Did Alex being evil? I think no, because it is usual thing in startup world.
But the way Alex 'lure' them to easily seal the deal - even he also visited Dosan's parents he got it all.

And, not to forget that this guy is clearly their mentor.

Why, in the world, they don't talk about this deal first to him?

Oh well.. the timing is not right..

Will things go different if Dosan didn't overhear Jipyeong's plan B? Or if Jipyeong could offer about his plan B DIRECTLY to Dalmi?

Well, we know Dalmi also reject the plan B offer. #StartUpEp11

Personally, I wish Dosan didn't overhear Jipyeong's plan B - or if he did, i wish Dosan didn't make such instant decision to just accept Alex's offer.
Plus, it's also Dosan's own req: "take the entire Samsan Tech team".
I bet this will be used by Alex as his reason to do this.

Last word:
This is why, people mostly say "there should be a line between business and personal life" #startupep11

Let's see what's their fate after they signed the deal with 2STO.
#StartUpEp11

PS: since i didn't expect that this thread would be taken this much attention, i'll add one more last word.

(Another) last word:
There is a famous saying "your best teacher is your last mistake"

There has been a major human error & mistake that has turned the fate of the company and individuals. But this will be their great lesson for their growth in business world.

#startupep11

If you guys are interested about the more in-depth of Samsan Tech, specifically after what happened in #startupep11, you can read this thread - made by somebody who works in IT industry. https://twitter.com/geekahjumma/status/1330363108687114241?s=19