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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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Some Quick Things Every Founder Should Know

Both Sides of the Table

Payback periods on customer acquisition way more important to you in the near-term. Get paybacks wrong and you're out of business  —  @msuster 4/ LTV/CAC is to impress investors. Ultimately it matters a great deal. Usually a terrible idea as runway extension.

Founder 242
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Free E-guide: The Bootstrapper’s Guide to Business Development

NZ Entrepreneur

This decline has also become evident in startup accelerator programs shifting their focus on later-stage scale-ups that provide higher returns. Capital funding for early-stage companies is drying up and becoming harder to find. Each stage of tech company growth has unique challenges.

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A Complete Guide to Account-Based Marketing: Win Over Your Ideal Customer

ConversionXL

For 90% of companies , the top goal for ABM is new business generation— new clients, new contracts, new logo acquisition, etc. For example, if one new acquisition is worth $10K, a pilot win could be 20 new acquisitions for $200K. Start by defining your objectives: what do you want to get out of ABM ?

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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

A VC wants to know that you have a solid plan to execute a stand-alone business and if you require capital for an acquisition they’d rather evaluate it at the time rather than over-fund you now. This is a red flag for VCs.

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Why Uber is The Revenge of the Founders

Steve Blank

Facebook’s ~$20 billion acquisition of WhatsApp, a 5-year-old startup that had $10 million in revenue, made no sense until you realized that Facebook was paying to acquire 300 million new users.). And in later stage rounds an explosion of corporate VCs and hedge funds now want in to the next unicorns.

Founder 245
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10 Real World Hazards With Taking Your Startup Public

Startup Professionals Musings

Last year was quite a year for IPOs, largely influenced by the significant rise in the number of special purpose acquisition companies (SPACs) who went public, despite almost uniformly negative returns. Smart entrepreneurs are now starting to look at this option again, as well as the challenges of running a public company.

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