article thumbnail

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.

article thumbnail

9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

Products that can be easily produced and sold via multiple channels, including the Internet, are more easily scaled world-wide. This reduces the cost of customer acquisition, allows easy upgrades for service and new features, and improves customer loyalty in the face of new competitors in the market.

Merger 386
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

10 Ways Owners Often Jeopardize Their Business Growth

Startup Professionals Musings

As the business operation and the team grows, regular and effective communication from key personnel is critical. Yet I still see expense budgets based on traditional channels, with no strict metrics on cost of customer acquisition by channel, or lifetime customer value. Poor communication and visibility from the top.

article thumbnail

Quickly Unpacking Microsoft’s Acquisition Of GitHub

Haystack

Word here is that GitHub will be afforded a similar situation within Microsoft, operating as a wholly-owned company yet still retaining its structure. After being installed in 2014 as Microsoft’s new CEO, Nadella has turned around the Seattle ocean liner on a new course after the Ballmer regime. They’re probably not far off from the truth.

article thumbnail

The Biggest Barriers Keeping Your Startup From Seeing Its Full Potential

ReadWriteStart

They want to snowball their customer acquisition, attracting thousands of new people to the brand, and reach diverse new audiences in new locations. You’ll need money to get all the initial equipment, space, and people required to begin operations. Marketing/advertising channels. But what if you want to grow more or grow faster?

Startup 127
article thumbnail

Why Companies and Government Do “Innovation Theater” Instead of Actual Innovation

Steve Blank

Disruption today is more than just changes in technology, or channel, or competitors – it’s all of them, all at once. HR processes, legal processes, financial processes, acquisition and contracting processes, security processes, product development and management processes, and types of organizational forms etc.

article thumbnail

The Great Retail Reinvention: How the Internet Is Reshaping the Way We Buy Clothing

View from Seed

The old brands and distribution channels are dead or dying. What’s looking likely is that instead of physical stores and ecommerce being distinct, separate channels, we will see increasingly tight integration between the digital and physical experience of a brand or retailer — and new forms of retail experiences altogether.

Internet 209