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Cloud startup story: coming to brink of being acquired

December 8, 2010

http://blog.backblaze.com/2010/08/27/backblaze-online-backup-almost-acquired-breaking-down-the-breakup/

Amazing story on how a bootstrapped successful cloud-storage startup went through 6 months of due diligence to be acquired, and then having the deal fall through at the last moment. The main factor was trust. The buying companies board did not trust that the team would stay given the amount of immediate payout money they were forking over. This threw redflags to the cloud-storage company and trust was broken.

He says that these kinds of things need in-person meetings from the start, with all important people attending. Additionally he said to not let it go on for too long and to do your due diligence.

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