Venture Capital

Venture Capital

by Mike Masnick





Reviving Acquired Startups Suffering Inside Big Companies

from the saving-those-poor,-unloved-startups dept

There are so many stories of big companies buying startups for lots of money, and then realizing they don't really have a need for the startup. In a few cases, the company's former management team will buy back the startup, but it's a fairly difficult move. There is even the occasional story where startups selling out to larger companies have been able to write in buyback terms - but it doesn't happen very often. However, realizing that this situation happens more often than people like to admit, a new VC fund has been formed to help buy former startups out of the larger companies that acquired them. Basically, these VCs have found an undervalued market. The current owners want out, while the startups are already (somewhat) proven with a known product and known market - which just isn't getting the attention it deserves or needs. Should be interesting to see what comes out of these once again startups.

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