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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. In response, venture capital firms like Sequoia and Andreessen/Horowitz are hiring new partners just to work with their portfolio companies and match them to corporations. The goal is to get a corporate investment or an outright acquisition of the startup.

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This Week in Venture Capital – Episode 2

Both Sides of the Table

I was on This Week in Venture Capital (TWiVC) again this week with Jason Calacanis. I think everybody heard about this acquisition. They bought distribution and engineering talent. On the founder’s side it’s about taking money off of the table and / or having strategic reserves for big acquisitions.

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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

At our mid-year offsite our partnership at Upfront Ventures was discussing what the future of venture capital and the startup ecosystem looked like. Anybody who has studied the VC industry knows that it works by “power law” returns in which a few key deals return the majority of a fund. So it’s about 20%.

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How is the VC Asset Class Doing?

View from Seed

The top quartile has distributed 2.03x (vs. 1.68) and the median fund now has distributed 1.27X (vs. The longer the portfolio maintains the same value without distributing back cash, the worse the fund’s ultimate IRR. Based on that metric, the top quartile fund has now distributed 2.03X after 12 years. 2 years ago).

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Quickly Unpacking Spotify’s Acquisition Of Gimlet Media

Haystack

Apple is ultimately the 800-pound gorilla in the audio minutes space as it relates to podcasts, with their woefully outdated native Podcast app being the most dominant podcast app (and having native distribution at scale), despite years of mobile app innovation in podcasts. 3/ Audio As A Feature Of Streaming Services.

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Revisiting the Craft Beer Metaphor for the VC Industry

View from Seed

This happened both in term of large-scale mergers (Coors and Miller for example) as well as via acquisition of craft players (like Heinekin’s acquisition of Lagunitas). Within venture, some rumblings of similar combinations have brewed from time to time. Not everything has been identical, but many of the broad themes rhyme.

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Startup Killer: the Cost of Customer Acquisition | For Entrepreneurs

www.forentrepreneurs.com

Blog About Log in Register Startup Killer: the Cost of Customer Acquisition In the many thousands of articles advising entrepreneurs on what they have to focus on to build successful startups, much has been written about three key factors: team, product and market, with particular focus on the importance of product/market fit.