Built to Sell Radio Ep 538 How 2 Brothers Bootstrapped AppArmor to a $40M Exit — The Answer That Almost Cost Them $20M
Mar 20, 2026
David Sinkinson, co-founder of AppArmor and author of Startup Different, built a campus-safety software company without outside funding and sold it in a strategic acquisition. He recounts bootstrapping through side businesses, leading early sales, tough choices on employee equity, a pivotal $20M moment they declined, and how the later $40M deal and post-sale life reshaped his purpose.
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Equity Isn't Always The Best Employee Incentive
- Equity isn't the only way to reward employees and can complicate early hiring decisions.
- David avoided option pools, preferred bonuses/raises, and believed early equity asks could have led him to replace team members.
Tell Teams Quickly And Lead With Job Security
- Tell employees the acquisition news fast and address job security first to prevent panic and LinkedIn churn.
- David wished he'd involved senior staff earlier; on Day 1 he told them nobody was losing their job and that raises, bonuses, and RSUs were coming.
Netflix Culture Flopped For A Four Person Team
- Trying to copy Netflix culture at four people failed and triggered early departures.
- The team moved to a lively co-working space, rebuilt a clear mission 'help people be safer on campuses', and stopped losing staff for years.
