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?
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A few factors, time is money, investor goals, economy of scale
For entrepreneurs and startup types, they are not the ones to grow the business organically. Once it’s past the start up phase, they are bored and want to do something else.
Investors have a goal of return the clients money in 5 years with growth. Having it sit in a business that’s steadily growing would not be what the investors want
Economy of scale, there’s only so much the startup can do, only so many customers they can reach. But if they are acquired by Google or Microsoft, they would gain access to greater infrastructure of international market or existing customer base. This is something that will take any organizational decades to build, even if its successful
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