Was Unhappiness Shared Among VCs Regarding Mint's Sale to Intuit?

To be clear, this was probably a bad sale - as were other sales around that time, such as Zappos and Instagram. From a distance, Mint seems like a company that had a ton of potential to be a super-valuable independent company. It's easy to say in hindsight. However, it's worth exploring the perspectives of the venture capitalists (VCs) who were involved in the sale.

VCs and Their Perspectives

Regarding the questions about VCs being unhappy, yes, among a group of smart, reasonable people, you would imagine that some thought this was a mistake. The venture model, as well as the angel model, can be challenging, and this sale certainly demonstrates this complexity.

Investors' Reaction to the Sale

Large personal investors would likely be happy with the deal, while those who invested someone else's money might not. For instance, I was a small personal investor in the A round and made about a 9x return on my 25K investment. Additionally, I received compensation from being an advisor to the company for some common stock, adding to my returns. My decision to invest in Mint, particularly in the early parts of 2007, seemed to be correct.

Venture Capitalists' Perspectives

The reaction of VCs to the sale is varied and depends on the round in which they invested:

First Round Capital: Glamorous, happy with the exit. Benchmark: Not happy, but they also persuaded Aaron to avoid selling earlier for only $85 million, supporting their perspective that the increase is exciting. Founders Fund (FF) and DAG: Very annoyed, feeling used. They believed the company was in play and might have only quickly got a minor return on their capital, yet still get some marketing value from the deal.

Conclusion

The sale of Mint to Intuit raises questions about the challenges and complexities of the venture capital model. While some VCs might be thrilled with the outcome, others might be disappointed. The varying perspectives highlight the importance of understanding the expectations and goals of all parties involved in an investment.