This article discusses changes in the tech industry, particularly the erosion of loyalty between talent and companies. In the past, founders and employees shared success together, but now big tech companies conduct acquisitions by poaching only core personnel, leaving remaining employees and investors feeling betrayed. This signifies the disappearance of the unspoken promise of 'loyalty,' and the article provides insights on what we should learn and how to cope with these changes. While the reality is bitter, it emphasizes the importance of finding people who still uphold their 'convictions.'

1. The Leader Who Left, The Team Left Behind

Six months ago, you moved to San Francisco with your family, even taking a pay cut, to join an AI startup. "This is the big one!" you proudly told your parents. But last week, a Slack message labeled "exciting news" appeared. The CEO is leaving for Microsoft, and most of the team is going too. But you're not on that list. You're still getting paid, but the leaders who drove the company's mission have abandoned you. A truly devastating situation.

2. The Era of 'Talent Poaching' Instead of 'Acquisition'

In the past, when a company was acquired, all employees typically joined the new company together. When Instagram sold for $1 billion in 2012, all 13 employees moved to Facebook and the founders stayed for 6 years. Everyone shared the risk, and everyone shared the reward.

But recently, this approach has changed. After Adobe's attempt to acquire Figma for $20 billion was blocked by regulators in 2022, big tech companies found new methods:

• Microsoft paid Inflection a $650 million "licensing fee" and hired the CEO and most of the 70-person team.
• Amazon took the same approach with Adept, taking 80% of the technical staff.
• Google re-hired Character.AI founders for $2.7 billion, then applied the same model to Windsurf and Hume.

All of these proceeded as "acquire the technology license, hire the people you want, and leave the rest behind." This isn't a simple acquisition — it's talent poaching. No regulatory review, and not everyone who built the company gets to come along.

3. Even Founders Are Leaving

This phenomenon extends to founders themselves. Last month, two co-founders of a $12 billion startup returned to their previous company. A year earlier, the CEO of a $32 billion company moved to a competitor. If the people who started the company won't stay, why should any other employee feel loyalty?

"Why should you take the risk? If even in the best case scenario, you have to watch your CEO leave without you."

There used to be an unwritten 'promise.' Not recorded or signed, but understood by all: "You take care of the people who bet on you." The employees who took pay cuts, the investors who invested when nothing was proven, the partners who turned down safer options.

But that promise is now gone. The week after the CEO's departure announcement, everything looks the same on the surface. Same standups, same Slack channels... But the chosen ones are negotiating stock options while everyone else quietly updates their LinkedIn profiles. A bitter reality.

4. Changes in VC: Bets or Partnerships?

Venture capitalists are experiencing similar changes. Just five years ago, investing in companies that competed with portfolio companies was taboo. One fund even gave up $21 million in equity to avoid conflicts of interest.

But now things are completely different. Mega funds simultaneously invest in three, four, even five companies in the same space. As fund sizes doubled and companies stayed private for 15 years, VCs couldn't afford to miss major sectors. So they bet on everyone and let the market decide.

"See how they painfully explain how each company is different from the others."

The author, working at a boutique fund, says they can't hedge like that. They have to choose carefully.

5. Lessons We Learn and Remaining Hope

What do we learn from these changes?

• Every employee who received that Slack message realizes that 'mission' was just marketing rhetoric for talent attraction.
• Every founder who sees their VC invest in competitors learns they were a 'bet,' not a 'partner.'

The author says he still supports founders and believes now is the best time to build something. But he now tries to find people who believe in the importance of 'promises.' People who choose to go slowly together with those who believed in them, rather than taking a faster, wealthier path.

So there are important questions for all of us:

• Before accepting investment, ask your VC where else they've invested in your space.
• Ask what happened to the founder's previous company employees.
• Before signing any contract, make sure you understand 'what the numbers actually mean' (e.g., liars-valuation).

Conclusion

The promise of 'loyalty' may be dead, but people with 'conviction' still exist. And finding them has become more important than ever. In difficult times, if we are with people who cherish trust and the value of promises, we can forge new paths. May you make wise choices in the treacherous tech industry.