Acquisition is a highly-coveted exit by entrepreneurs and investors to harvest cash. Many large tech companies compete to enter new markets through acquisition of new ventures. Moreover, there are rising trends in micro-startup acquisitions and in new ventures acquiring other new ventures. All of this is inspiring news for investors and founders, indicating the presence of a healthy market for acquisitions. Since exit through acquisition has become an attainable desirable outcome for new ventures, identifying the determinants of these acquisitions is an important research area.

A key decision point that entrepreneurs control is whether to go it alone or team up with others. Team ventures have been shown to perform better, grow faster, and survive longer than individually-founded ventures. In this paper, we investigate the effect of team versus single founder arrangements on acquisition likelihood and whether there is a specific number of team members that optimize the chances of getting acquired.