10KC’s near‑miss sale led to a $75M exit

Ten Thousand Coffees, known as 10KC, is a Toronto‑based enterprise mentorship software company that spent eight years building a path to an exit. Two years before it closed a $75‑million Canadian growth‑equity deal with US firm Five Elms Capital in late 2022, the startup was only weeks away from a sale to an unnamed public strategic buyer. The deal collapsed after the company had already spent six months and $150,000 on the process, and the founders were left wondering whether to continue or wind down the business. The unexpected loss forced the team to rethink its strategy and look for other opportunities, a decision that ultimately paid off. The company’s revenue had already reached about $10 million before the collapse.

After that setback, 10KC attracted eight term sheets ranging from $75 million to $90 million, each at nine‑figure valuations from strategics, private equity firms and family offices. The startup chose a stronger partner, securing five times more capital than the earlier offer. A key factor in the successful exit was a spreadsheet the founders built that catalogued 200 potential investors and buyers, including decision‑makers and contact details. The data gave the company a clearer view of who was truly interested. Wilkin advises future entrepreneurs to ask a prospective buyer for a detailed work‑back schedule; real buyers provide it while fake ones cannot or give vague answers.