Latest / The Startup Exit Podcast with Fexingo: IPOs, Acquisitions, and Founder Liquidity Events
How Founders Use Earnout Caps to Avoid Leaving Money on the Table
In episode 162 of The Startup Exit Podcast, Lucas and Luna dive into the mechanics of earnout caps — the often-overlooked clauses that can quietly cap how much founders actually pocket after an acquisition. Using the recent legal dust-up between Runlayer and Rippling as a cautionary tale, they explain why capping earnouts at a multiple of revenue can turn a $50 million headline deal into a $30 million payout, and how founders can negotiate for uncapped upside or structure earnouts around EBITDA growth instead. They also touch on how the current IPO market's volatility, seen in…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.