Product Hunt began with all about new tech products website when it was launched back in 2013. Now it has become the number 1 launch pad for product-based startups.
The common interest has made AngelList, the LinkedIn equivalent for startups, to acquire Product Hunt for 20 million dollars. The price was reported first by Recode.
Product Hunt which decides the popularity of apps, tools and web gadgets based on the voting by its massive user base, now has over a million products and is associated with over 50,000 companies.
Product Hunt was speculated to be raising another round of funding for the past several months before the acquisition.
AngelList was the best option for the company’s future at the time, explains Product Hunt founder Ryan Hoover, adding that by no means was the acquisition the only option. He said that he was in talks with AngelList for over four months before the actual deal and denied reports that he was looking to raise another round at any point. Mr. Hoover said the deal combines the two forces to make a mightier one.
Naval Ravikant, founder of AngelList says Product Hunt will completely and forever run as an independent entity. He said the company would maintain "it's playful, emphatic and curious attitude" making it clear that both the companies will operate individually.
The founders of AngelList and Product Hunt, however, detail how the partnership stemmed out of common fears of disruption each other' and conflict of interest.
Mr. Ravikant, who was one of the initial investors in Product Hunt had met Mr Hoover before about a possible partnership but the latter had concerns over the deal. He felt that AngelList might diversify into the product discovery forum. On the other side of the potential deal, Mr Ravikant and his team thought that Product Hunt could also easily transform into a platform for fundraising for startups.
Mr. Hoover said he wondered if Mr. Ravikant and his team are going to move into our space and shut us down. But Mr. Ravinkant told us very explicitly that he had invested in Product Hunt personally because he likes what we do and believes in our vision.
The two now believe they have unlocked new opportunities in the same startup space.
Mr. Ravikant explains how they become a network of technology companies with this acquisition, which he said, was perfect for them. He said AngleList helps entrepreneurs find the talent and raise the money the project needs, adding that with PH, they can now help these founders find their early customers and evangelists.
Mr. Hoover has been assured that like Instagram’s acquisition by Facebook has not interfered with its independent style of working, he will remain the CEO of Product Hunt, and his team will find soon find space in the AngelList headquarters in San Francisco.
Mr. Hoover will now work to collaborate with AngelList and get the two teams working in seamless cohesion to get the company its next millions.