article thumbnail

Corporate Acquisitions of Startups: Why Do They Fail?

Steve Blank

More often than not the results of these acquisitions are disappointing. buy out an entire company for its revenue and profits. 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.

article thumbnail

9 Success Principles To Propel Your Next New Venture

Startup Professionals Musings

You need a stable customer base with an automatically renewing revenue stream, such as the subscription model. 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. Prioritize mergers and acquisitions early.

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

WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear: Startups and Marketing for Geeks

Late last year we passed $100M in annual recurring revenue. That revenue is in on 75,000 customers, earned through the hard work of 500 employees across six offices on three continents. We just announced a few more things.

Engineer 152
article thumbnail

Tackling The Talent Gap: Best Practices For Uncovering New Hires

YoungUpstarts

Research shows that companies with greater gender and racial diversity drive nearly 15x more sales revenue than companies with homogenous teams, proving that it literally pays to build an inclusive team. When you think you’ve found the right hire, do your due diligence to ensure it’s a two-way fit. Look to organizations like i.c.

Hiring 100
article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60
article thumbnail

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

Steve Blank

HR processes, legal processes, financial processes, acquisition and contracting processes, security processes, product development and management processes, and types of organizational forms etc. For the contractors, anything new offers the real risk of losing a lucrative existing stream of revenue. The result is process theater.

article thumbnail

What Happens When Startups Turn from Their Innovation Stage to Operational Excellence?

Both Sides of the Table

As a startup in this phase you often raise capital, get press, hire staff and everything feels possible. How long does it take me to pay back my original customer acquisition costs? There is nothing more pure than building a product, putting it out in the world and seeing paying customers using your product and in some cases loving it.