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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Startups fail, left and right. Investing in early stage startups is very risky as in most of the startups will just use up the money and die, so the 1% successful have to compensate with outsized returns.
The same investors already taking a huge risk do not want to wait for another 15 years until the startup maybe grows, they want their returns fast.
The whole model is built around the notion of trying to “grow” a basket of customers and sell it to an established entity to be fucked over.
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