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Does it really make sense for a company with $4 million in funding to pay $1 million to acquihire a seed-stage startup sight unseen?

Or, perhaps more to the point, does it really make sense for a seed-stage entrepreneur to sell their company for $1M in equity in a startup that raised its Series A 2 months ago?
James Colino's profile photo
Why don't they just recruit 4 top students fresh out of school, pay them $125k to start and give them some equity.  Take the other $500k and push it into marketing and longer lasting PR.   This is a PR stunt that will have a 1 month spike.  
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