In recent posts, we've outlined our updated thesis around backing mission driven founders and explained…
Entrepreneurship
Facebook, Google, Salesforce, Twitter…all the top players in Silicon Valley want to get their hands on the best talent around. That’s why we’ve seen example after example of “acqui-hires” in the past few years as well as some very large acquisitions where a big driver was the talent behind a start-up (e.g. Nest, Beats). However, only a […]
In recent posts, we've outlined our updated thesis around backing mission driven founders and explained…
When we developed our core beliefs, we spent considerable time thinking about our investment philosophy, as…
Facebook, Google, Salesforce, Twitter…all the top players in Silicon Valley want to get their hands on the best talent around. That’s why we’ve seen example after example of “acqui-hires” in the past few years as well as some very large acquisitions where a big driver was the talent behind a start-up (e.g. Nest, Beats).
However, only a few big companies have truly figured out how to keep founders around after the acquisition. In most cases, as Bloomberg detailed with Zynga, the founder leaves 1-2 years after acquisition. After all, someone founds a company because they want to be a leader, not a follower. Entrepreneurs have a difficult time when the acquiring company tries telling them how to run the business they have created and grown.
When the acquiring company is successful at getting the founder to stick around, it’s typically because they’ve learned to give their founders the latitude to run their start-up as an independent unit within the business. You’ll hear these founders say, “I work for Marc [Benioff]” or “I work for Jeff [Bezos]” rather than “I work for Salesforce” or “I work for Amazon.” And the start-up founders get direct access to the CEOs. Nothing changes for the start-up except who owns the company.
It is no surprise that the companies that best understand how founders tick are the ones that have still their founders at the helm: Google, Facebook, Salesforce, Amazon, etc. The companies that have figured out how to keep founders around can leverage their knowledge and expertise over time…and thus pay much higher acquisition prices than those companies that fear that acquired founders will leave as soon as they can, because they hate to get bogged down in bureaucracy and a big corporation.
Version One
It’s been a while since I last wrote publicly about robotics, though it remains a core focus of my time in deep tech. Our previous post on the topic dates back to last July and given how quickly markets and technologies evolve (and how we naturally refine our thinking over time), it feels like the […]
If you’ve been reading our blog recently, you may have noticed that we updated our…
We’re excited to announce that our new and refreshed website is live! This update was…