This month we officially heard news that Vegas Tech startup company Rumgr had been acquired by eBay. This seems to be a really great outcome for Rumgr which started at the very first Startup Weekend Las Vegas. I still consider the first Startup Weekend Las Vegas as the kick off of what we now call #VegasTech. As one of the 4 organizers of the first startup weekend, I’m extremely happy that a company started at Startup Weekend Las Vegas was able to create enough value that they would be acquired by eBay. Props to Dylan Bathurst and Alex Coleman for making it happen.
At the recent Tech Cocktail Celebrate event, there was some discussion about whether Rumgr leaving Las Vegas to go and work at eBay was a bad sign for the Las Vegas startup community. People also like to point out companies like Romotive that have left Las Vegas to the valley as a bad sign for the Las Vegas startup community.
Personally, I think that acquisitions like what happened to Rumgr are fantastic for the Vegas Startup community long term. First, it shows that a startup company from Las Vegas can have a successful exit and is attractive to a silicon valley company. Second, when Rumgr’s employees are in the Valley, they’ll be evangelizing Las Vegas to everyone they meet. No doubt many they meet will ask them how a startup from Las Vegas had a successful exit to eBay when startup companies in the valley haven’t been able to get that exit. That’s a great thing for the Las Vegas startup community.
Plus, you can be sure that many startup companies in the valley will ask Rumgr what made Vegas unique for startups. What better for the Las Vegas startup community than to have Las Vegas startup community evangelists in the valley telling people about what’s happening here.
Not to mention, we shouldn’t be surprised if and when some of the Rumgr employees finish their earn outs and move back to Vegas. This is certainly not what the acquiring company wants to hear, but it’s natural for a startup company’s employees to do the earn out and then start something new. No doubt Rumgr employees will consider doing it again in Vegas. In fact, they’ll likely bring their new friends and colleagues from the Valley with them.
This is a great win for the Vegas Tech community in the long term. In the short term, yeah we’re going to miss having the Rumgr Founders and employees around the community. However, our short term loss is going to be a long term gain for the community. Congrats to Dylan, Alex and the whole Rumgr team!