The Rise Of Micro Startup Acquisitions
Organize 2-3 of your CS major friends and work as a ‘preexisting team’, Then sell yourselves
Editor’s note:Amit Paka is a co-founder at Parable, a Creative Photo Network for iOS. Previously, he founded Flockish (bought by StubHub-eBay), led Product for Mobile Payments at PayPal and held Product Development roles at Microsoft.
Recent news of Pinterest acquiring a two-person startup was probably a head scratcher for most of you. It shouldn’t be. Along with Kosei, Hike Labs was a focused micro acquisition intended to bolster Pinterest’s content-discovery efforts. More companies should be following their lead.
Technology companies have historically targeted startups with established products, proven revenue streams and, thereby, hundreds of employees for billions in capital. The past few years, however, have seen a significant shift toward investments in increasingly smaller teams, a trend away from pure-play acqui-hires, that is accelerating.
Facebook, Google, Twitter, Apple, LinkedIn and even eBay have been trailblazers. A reinvigorated Microsoft recently jumped into the fray with its purchase of…
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