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Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. The goal is to get a corporate investment or an outright acquisition of the startup. VCs like acquisitions as much as IPOs because the acquiring companies often can rationalize paying large multiples over the current valuation of the startup.

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Venture Capital Firms Broaden Horizons: Early and Late-Stage Investments Fuel Innovation and Growth

The Startup Magazine

Late-stage investing is about fueling the rockets, providing the capital necessary for scaling up operations, entering new markets, and, ultimately, preparing for an exit, be it an IPO or acquisition. The companies are bigger, the investments heftier, and the risks, while different, remain significant.

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M&A or IPO?

Reid Hoffman

This week, I’d like to turn to the question of how current market conditions affect the approach entrepreneurs should take towards their exit strategy. The fundamental choice that venture-backed entrepreneurs face is simple: M&A or IPO? Would you like to buy one of X at the market clearing price of Y?”.

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Entrepreneur and Consultant Luke Lazarus Replicates His Success for the Benefit of Clients

The Startup Magazine

After working with clients to uncover the best business model, he urges them to let go of their hesitation about seeking funding from venture capitalists and angel investors. Lazarus also works with existing struggling businesses to determine the reasons for lack of success and turn the organization around with his proven strategies.

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10 Real World Hazards With Taking Your Startup Public

Startup Professionals Musings

Today the rate of startups going public (IPO – Initial Public Offering) is finally up from the dead zone of the last two decades, and is now double the rate back in 1999. Thus, today around 90 percent of successful startups are still acquired by bigger companies versus an IPO, as the safer and preferred method of growth and funding.

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The unprofitable SaaS business model trap

A Smart Bear: Startups and Marketing for Geeks

Marketo filed for IPO with impressive 80% year-over-year growth in 2012, with almost $60m in revenue. I know the argument: The pay-back period on sales, marketing, and up-start costs is long, but there’s a profitable result at the end of the tunnel. Even with very broad numbers, you can see how this model doesn’t work.

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Marketing Your Startup: A Billion-Dollar Company’s First Marketer Reflects Back

View from Seed

Ellie Mirman was the first marketer hired by the CMO of HubSpot, the Boston-based marketing software startup that IPOed in 2014. Below, she shares lessons learned from the earliest days of marketing the company and how this has translated to her second startup role as VP of Marketing at Toast.

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