Is this the new bubble?
This seems to be quickly becoming a new and viable business model: Start small, do something really cool, build a loyal user base, and then be acquired by Google or Yahoo! or Microsoft. Sounds like a good summary for the “exit strategy” section of the business plan you present to VCs.
Most recent success: Writely — purchased by Google. Previously: flickr, Del.icio.us (now part of Yahoo!) and many more in the past weeks and months.
The problem, obviously, is that this business success is not predictable. And that it’s bloody hard to come up with something slick and captivating and to build up a following, while others are most likely doing the same thing at the same time. Otherwise everybody would be doing it. This form of exit from a startup can be very exciting for the founders and staff. If I had a cool idea, I’d hop on the bandwagon in an instant.
Do we know of anybody who’s been actively pursuing this strategy from the get-go? Figure out what might be a strategic advantage for Google, Yahoo, MSFT in the future, develop the idea independently and make enough noise so you are noticed by your prospective future owner? Or is it always serendipity?
Technorati Tags: Google, Writely, Business
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