Sell Your Startup's Data and Code Before Shutting Down

Shutting down? How to sell your startup's data and code first

A playbook for founders and boards winding down a startup: which assets AI buyers and acquirers want, how to protect employees' and customers' privacy, who approves the sale and how to run it quickly.

ERIC PIWOWAR — MANAGING DIRECTOROCT 22, 20262 MIN READLINKEDIN ↗

The short answer

Before shutting down, inventory code, data, domains and customer contracts, confirm who must approve a sale, and plan how personal information will be protected. Then offer assets to both acquirers and AI data buyers at the same time. Selling code and data separately from the company can return money to investors that a plain shutdown would lose.

Why it is worth the effort

A wind-down used to mean selling a domain and some laptops. In 2026, AI labs and data vendors are buying code and workspace archives from closed startups, as MIT Technology Review reported in October. Founders who plan the sale, rather than leaving it to the last week, have more buyers and better terms.

The playbook

InventoryCode repositories, product, domains, customer contracts, and workspace data in Slack, email and documents.
ApprovalsConfirm what the board, investors and any lenders must approve.
Privacy planDecide how employee and customer personal information will be excluded or masked. Consider telling employees before data is sold.
Two buyer listsAcquirers who might want the product, customers or team, and AI buyers who want code and data.
Sell assets in lotsProduct and customers to one buyer, data to another, can beat a single bundled sale.
Close cleanlyAsset purchase agreements, data deletion terms and a plan for customers.

Sell in lots, to two buyer lists

1One bundled sale2Sold in lots

Assets

ProductCustomer contractsDomain and brandCodeWorkspace data

Buyers

AcquirersAI data buyers

A single bundled sale reaches one kind of buyer. Splitting the assets lets acquirers and AI data buyers each bid on what they value.

Both sides of the table

Acquirers looking at the same situation can read buying from startups that are shutting down. Everyone should run the rights checklist.

Frequently asked questions

Who gets the money from a wind-down data sale?

Usually creditors and investors first, according to the company's obligations and preferences. Counsel should confirm the order before a sale closes.

Sources

AI labs are buying data from dead startups to train their models · MIT Technology Review, Oct 13, 2026