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.

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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