SaaStr · 2015-09-27
· 3902d
HelloWallet Acquisition Model: Analysis of 3x Return Exit Strategy
Jason Lemkin analyzes whether the HelloWallet business model succeeded, using the acquisition as a case study for 3x return exits. He discusses how a $52m acquisition on $12m invested represents an acceptable outcome for investors who don't expect unicorn-level returns, making it an attractive exit for both founders and investors.
Metrics in this report
Acquisition Price
52$m
HelloWallet case
Exit valuation
Return Multiple
3x
calculated from 52m/12m
Investor returns on exit
Total Capital Invested
12$m
HelloWallet case
Investor capital deployed