A Smart Bear: Startups and Marketing for Geeks

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Refutation: An acquisition is always a failure

A Smart Bear: Startups and Marketing for Geeks

Jake Lodwick wrote an article on PandoDaily entitled “An acquisition is always a failure.” On his startup’s sale to a larger company, he then laments that the “youthful energy that created so much value was siphoned off.” Sure not all acquisitions go that way. Or eBay’s acquisition of PayPal?

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

A Smart Bear: Startups and Marketing for Geeks

The next sale isn’t quite as sweet.). And now, with Silver Lake’s investment and support, we can accelerate our growth investing even more into our strategic roadmap, and placing some new bets on ideas we’ve had but haven’t been able to find the space to explore. It’s the heroin-hit that hooks the entrepreneur. (The

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The Lindy Effect on startup potential

A Smart Bear: Startups and Marketing for Geeks

users; there aren’t 13B humans) or run out of marketing channels for acquisition (GoDaddy’s customer growth rate is 13%/yr since 2009 ; at that rate it will take 18 years for them to 10x, assuming market size and conditions would even allow them to sustain that). Indeed, at some point 10x is strictly impossible.

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A Scorecard: Should a decision be fast, or slow?

A Smart Bear: Startups and Marketing for Geeks

The benefit is that we work together for a common goal, taking care of the needs of support, sales, marketing, engineering, product, and even finance, rather than solving for one department’s goals at the expense of another. Decision requires multiple teams who haven’t worked together before.

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Kung Fu

A Smart Bear: Startups and Marketing for Geeks

Instead, watch payback period for acquisition efficiency, watch retention for product/market fit, watch expansion revenue for long-term growth, and watch gross margin for long-term profitability. Sales” is not a dirty word. A reliable paid acquisition channel results in a somewhat stable business. HT Tom Tunguz ).

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Bending over: How to sell to large companies

A Smart Bear: Startups and Marketing for Geeks

Instead of making a few dollars per sale and hoping for thousands of sales, you sell to only a few customers, and charge much higher rates. Your EULA will be examined with the same fervor as a billion dollar acquisition. Is there progress on getting the sale done? Some will even say they have the power to block the sale.

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The right way to position against competition

A Smart Bear: Startups and Marketing for Geeks

Of course you're going to position your company with a unique offering: exclusive features, a distinctive culture, a refreshing pricing plan, an innovative sales strategy, etc. If they don't already know they have the pain, the sales process is going to be excruciating. "No one is doing it like we are.".