Silicon Valley Watcher - reporting on the business of innovation at the intersection of technology and media.
I spotted this recently from CB Insights: 67% of Tech M&A Exits in 2013 Went to Early-Stage Startups
The headlines may obsess over the WhatsApps and Twitters of the world, but the reality is most venture-backed startup exits are smaller and far from being unicorns. According to CB Insights data, 2013 saw 67% of tech startups exit after either the seed or Series A stages.
CB Insights says that, “A portion of those went to acqui-hires of startups hitting the Series A Crunch” but it also shows that the majority of startups didn’t see a future for themselves as independent companies. Or, that they would be able to grow to a sufficient size that allows them to be sustainable businesses.
This is very bad news for Silicon Valley and the rest of the world because it implies that there is no way to get to sufficient scale for young companies. Innovation will be squandered and trampled by the incumbent scale players: Google, Facebook, Oracle, IBM, Microsoft, Amazon, etc.
To read the full article, click on the image or title.
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Via Marylene Delbourg-Delphis