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Built to Sell Radio

Ep 248 David Yaffe - 5 Lessons from growing a startup to a 9-figure exit in 2 years

Aug 14, 2020
David Yaffe, an entrepreneur, shares insights on growing a startup to a 9-figure exit in 2 years, including creating an identity graph for publishers, determining equity slices, building a strategic data asset, employee protection and incentives, and the decision to accept the offer.
52:04

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Fostering partnerships can create opportunities and drive acquisition offers, as showcased by Arbor's initial rejection of a lower offer which turned into a valuable partnership opportunity with LiveRamp.
  • Founders should negotiate earnout terms based on tenure within the acquiring company rather than performance, while setting realistic timelines and trigger terms to protect their financial interests.

Deep dives

Building a Successful Startup in Two Years

David Yaffe shares the story of how he left Google to start his own company, Arbor, which focused on connecting publishers and marketers. In just two years, Arbor experienced exponential growth, reaching critical mass by covering 40% of the US unique users. The company's success was driven by the right market timing, a strong team, and a solid business model. After receiving multiple acquisition offers, Arbor was ultimately acquired by LiveRamp in a nine-figure exit. The negotiation process was challenging, with several offers being turned down before the final one was accepted. The acquisition required a rapid sprint to prepare the company for due diligence and finalize the deal. With the successful exit, Yaffe faced the challenge of adjusting to a new goal and purpose in life while exploring new ventures like estuary.dev, a company focused on making real-time data infrastructure accessible and easy to implement.

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