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How to build a software startup to be target for acquisition?

5 pointsby mohameddevalmost 10 years ago
I know it seems to be very broad question, but is there a steps or techniques to seek what kind of solutions that might big companies interested in acquiring [like Google for example] and start building the solution based on that?

3 comments

brudgersalmost 10 years ago
I can see several strategies:<p>+ Working on a problem that the big company doesn&#x27;t see that expands the market. Then the acquisition becomes a matter of buying into the market.<p>+ Working on a corner case in the big company&#x27;s market and executing better. In this case the acquisition is amounts to buying a feature.<p>+ Solving a problem for users in a way that obsoletes the big company&#x27;s fundamental business model. The acquisition amounts to stifling innovation.<p>+ Just being so awesome that acquiring your company is the only way to hire your team.<p>Despite arguments to the contrary, thinking about possible exits is a virtue not an ethical failing. Psychic income is great, but it doesn&#x27;t always pay the bills. On the other hand, the likelihood of a random outsider having a highly useful model of Google&#x27;s workings to the degree that being bought by Google is a viable exit strategy on day zero are pretty low [though an insider and industry veteran might be another matter].<p>Good luck.
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xackpotalmost 10 years ago
For me, the acquisition is a failure on all levels. Failure to execute, failure in reaching beyond one&#x27;s capacity to take the startup higher, failure in self-belief. Even though one may have earned money after an acquisition, the real aim of a startup is to change the world and not to get acquired and die. But failure doesn&#x27;t come cheap. For you to fail, you will need to put your heart and soul into the startup to succeed. And as spotman says &quot;build something you believe in, that solves a real problem, and gain real traction&quot;, he didn&#x27;t add that once you start getting offers for acquisition, stop believing in your idea and get lured by the offer and the riches. I personally believe in one learning from &quot;The hard thing about hard things&quot; book by Ben Horowitz, is that you should sell your startup when you have reached your max capability to take the startup to the next level.
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spotmanalmost 10 years ago
build something you believe in, that solves a real problem, and gain real traction.<p>if people see the value in what your doing and plan on using it, chances are a big company would too.
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