Would a large tech firm ever acquire an early MVP product/startup?

Feb 6 11 Comments

Acquisitions usually happen when the buying company is acquiring for the talent or a growing/at-scale product. But are there cases when they would buy a very early stage product for its idea and early product implementation? For the sake of argument assume no employees are part of the deal.

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TOP 11 Comments
  • Verizon zoBr70
    Company execs do make stupid stupid decisions - so, yes, it is quite possible. Ego can make burn their money in unimaginable ways!!
    Feb 62
    • OP
      Feel free to share pointers 🙂
      Feb 6
    • Verizon zoBr70
      Can't share example since it is not public info. In general, such acquisitions are very small so they don't typically get much press - acquisition to sunset happens within 2-3 yrs but no one hears about it for that reason. There are tons of examples if you ask the right people.
      If you are on the seller side, one need to be great at BS'ing, be able to make others' brains spin by projecting future hockey stick growth in next 5 years even though you are not making 200K in revenues currently. Lastly, need to have connections and pick an area that very few people understand - this makes it easy to BS and sell the shit.
      Feb 6
  • Okta nfc
    Patents make it more likely
    Feb 61
    • Verizon zoBr70
      Nah..in the open source world - it gives some credibility but not worth much. Exception is if it is truly breakthrough innovation. Big companies can go in without owning patent - they know how to squish small companies with limited resources.
      Feb 6
  • Uber / EngDgoQ22
    Yup, my first company’s founders had their first company bought by amazon before they even launched the product. Was back around 2000s when amazon was on their shopping spree.
    Feb 61
    • Verizon zoBr70
      Y2K were interesting times and so is now..
      Feb 6
  • New DvVM00
    yes. happens all the time. never heard of it without employees tho. and dollars are small since you obvi haven’t acquired a market yet
    Feb 60
  • OpenTable Meliodas
    Not for ideas, unless there are patents or significant IP attached. Ideas alone aren’t worth much.
    Feb 60
  • New / Biz Dev
    cable

    NewBiz Dev

    PRE
    GfK
    cablemore
    If it fits into company's strategy and has a great team.
    Feb 60
  • New FbRb40
    No
    Feb 60

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