What really happens behind the scenes of a $175 million startup deal?
In a special live episode of the Founder Shares podcast, recorded at Raleigh-Durham Startup Week, Tim McLoughlin, managing partner of CoFounders Capital, and Joshua M. Hayes, partner at Hutchison PLLC, walk through the full journey of Element451—from first investment to strategic acquisition by private equity firm PSG.
The conversation, hosted by Founder Shares creator Trevor Schmidt, gives an inside look at the early diligence, legal complexities, investor relationships, and fast-paced negotiations that shaped one of the Triangle’s standout startup success stories.
“Entrepreneurship is, in no small part, about relationships,” said Hayes. “If you’re able to go in with that mindset, you’ll always have someone to turn to during the hard times and to celebrate with during the wins.”
Founded in Raleigh, Element451 began as a spinout from a consulting firm and quickly gained traction in the higher education tech space. McLoughlin and Hayes break down what made the company stand out to investors, how it weathered the pandemic, and what it took to close a high-stakes deal fast.
“We probably invested five or six different times in Element over its life,” said McLoughlin. “And in the final days, everything moved incredibly quickly. It was the fastest deal we’ve ever closed, and the largest.”
Throughout the episode, McLoughlin and Hayes emphasize the importance of preparation, communication, and founder-investor alignment, especially when navigating spinouts, due diligence, and exit timelines.
“Founders should remember that due diligence isn’t just a box to check, it’s an opportunity to clean up and get stronger,” added Hayes.
Want to hear the full story of how a Triangle startup navigated growth, crisis, and a $175M exit? Tune in to the live episode of Founder Shares featuring Tim McLoughlin and Joshua Hayes, available now wherever you get your podcasts.
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