In an acquisition, one company buys another (its assets or its equity). For the acquired startup it is usually an exit: investors and founders are paid, and the company becomes part of the buyer. Deals can be cash, stock, or a mix.
Where in the journey
Any — a common exit outcome.
What the money is for
Provide an exit and fold the company into a larger business.
Common investors
The acquiring company (a buyer, not a round investor).
Watch out for
Integration risk; earn-outs and retention terms; not all shareholders win equally.