Why do some start-ups and/or companies want to be acquired as part of their exit strategy?

Question

I’ve been learning more about start-ups recently and have noticed a lot of them want to be acquired. Why is this? Could they also choose to grow their business?

In: Other

Answer 1

In biotech, if you want to bring your drug candidate to the market, it has to go through human trials. Human trials are prohibitively expensive (anywhere between USD 10-120 million), so only a pharmaceutical giant can readily afford them.

Selling your biotech startup to one of these is the difference between your product ever seeing the market – or not.