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People are often quick to question a startup that cashes out early, especially if ‌growth momentum is on its side. The underlying assumption is that fast-growing startups tend to be rewarded with lofty valuations.

While there is some merit to this argument, a peek beneath the surface will likely show that there is more to an exit than meets the eye. Supercharged growth doesn’t always guarantee massive profits, or even profitability.

Google’s acquisition of YouTube for US$1.7 billion in 2006 is an ideal example of a win-win situation through an early exit. It resulted in YouTube’s founders receiving a jaw-dropping payday and Google making the video-sharing platform an internet staple. YouTube raked in nearly US$20 billion in revenue for fiscal year 2020 alone, and that figure is only expected to grow.

Everything turned out rosy for all parties involved, but it could’ve easily gone downhill had the deal fallen through. YouTube was less than two years old at the time and was burning through cash quickly. There is a strong argument that the second largest search engine would’ve gone out of business without Google’s deep pockets.

Sometimes, the benefits that an exit through a merger offers are simply too great to turn down for a startup. Following this reasoning, we break down why AI-powered marketing platform Saleswhale opted for a successful exit through US-based unicorn 6Sense instead of going for its series B round.

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• *Event* AMA about Circles Life’s $5m ESOP buyback program on January 25th
  Circles.Life’s unique approach to ESOPs (employee stock ownership plans) has ignited conversations on how these programs are structured in Southeast Asia and how founders should design and implement their own.
  Ask and learn from Rameez Ansar, co-founder of Circles.Life, about their ESOP buyback program, what you should consider when structuring yours, and any of your other burning questions.
  Registration is free.
• *Event* [Workshop] What NFTs mean to startups in Southeast Asia on February 10th
  Curious about NFTs and want to expand your insights about this phenomenon? On February 10, catch our workshop with David Shin, head of global adoption at the Klaytn Foundation, to learn more about the digital asset!
  Get a single ticket to attend this workshop or subscribe to Tech in Asia Core at just US$0.55/day for unlimited access to all our workshops, signature conferences, and premium content.
• AWS SaaS Forum on February 17th
  Join the AWS SaaS Forum on February 17 to uncover opportunities and insights on SaaS trends, outlook for 2022 and how to build your business playbook. Attendance is complimentary.

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