Engaging in acquisition conversations can be distracting and demoralizing. Founders should only entertain such discussions if they are genuinely willing to sell the company.

During acquisition talks, it's important to maintain the narrative that you're fundraising, not selling your company.

Having a do-or-die mindset during the acquisition process can provide confidence and clarity.

Fear-based decision-making can lead founders to fundraise before their product is ready, especially if they believe their product is bad and fear failure.

Talking to corporate development people can be a distraction; they may express interest but often do not lead to meaningful partnerships. Meetings with corporate development teams can be a distraction for founders, as they often lead to the false hope of acquisition instead of focusing on building their startup.

It's essential to communicate to the team what you're willing to overpay for and why, ensuring that everyone understands the short-term nature of such decisions.

Many startup founders base their strategies on vague information, like a fundraising announcement or a podcast interview, without understanding the underlying context.

If you don't know something during negotiations, it's okay to admit it and say you need to consult with your co-founder.

As Y Combinator partners, we often see founders become overly focused on their competitors, which can lead to fear overshadowing their excitement for their own company.