We did hit the earnout 100% but I now realise how lucky we were.

I think the earnout can work if the terms are very clear and within your control to fullfill AND you have some leverage that incentivises the buyer to pay out. In our case, the buyer did not want to sour the relationship with the acquired team so ended up paying out. Mind you not without a fight.

When I sold, it was very important to me that all my investors at least made their money back. Negotiate a higher consideration that makes your investors solid. If you can’t then your company is not that valuable yet so you need to keep grinding or find a better buyer.

There has been an attempt to humble brag. Attempt failed.

Most are just plugging straight into the OpenAI API. Absolutely no moat or longevity.

🚨🚨🚨 Walk away.