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March 07, 2007

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Re: "the numbers speak for themselves"

A lot of the companies written about in TechCrunch, GigaOm, etc are duplicates. Similar solutions, bit little differences in execution/product placement. So if you filter them down into specific groups, suddenly there aren't *that many* new companies coming out.

Rick, You are right, the odds of being acquired by Microsoft are small. But, the odds are small of being acquired by any company. Microsoft acquired 19 companies last year, while Google acquired 10 and Yahoo acquired 9.

The odds of other exits are low too. VCs funded 3,416 companies last year. There were 198 IPOs and 379 M&A deals in the same year. Do the math...these are long odds.

Even with these long odds entrepreneurs are still starting companies and VCs are still funding them. A good portion of those that don't get acquired or go IPO can still be good cash flow businesses, and good partners with Microsoft.

Don

Don, I am curious: where did you get those #'s?

The acquisition numbers I got internally and from Wikipedia. The VC funding numbers, IPOs, and M&A numbers came from the National Venture Capital Association (NVCA).

I plan to write a more in depth blog on this subject next week, so I had already done some of the research.

Don

Don,
Thanks for coming by. funny, I'm working on a longer post with respect to partnering.. Wanna trade?

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