Make Startup Acquisitions Part Of Your Digital Business Growth Strategy
Since 2007, the startup landscape has exploded as investors have funded 10,187 startups in categories as diverse as insurance, artificial intelligence, and healthcare (see below figures). Investments in emerging technology startups have never been higher, which means the raw materials of technology-based innovation have never been more abundant.
Acquisitions are also on a tear, and not just by high-tech companies like Apple, Google, and Verizon but by leading firms in every industry. In fact, innovators in 22 different industries bought 1,981 startups since 2007 to advance a product road map, launch a new business, or plug a technology hole.
And the hotter the category, the sooner it’s snapped up. Blockchain startups are acquired after just three years of existence, while insurance technology startups are acquired more than 13 years after founding.
Mike Chirokas, Ben Arnold, and I recently published a report to help CIOs master startup acquisition. In it, we analyzed Venture Scanner’s data on acquisitions and summarized the experience of corporate development officers, bankers, and consultants doing startup deals, due diligence, and integration.
As the leading technology voice in the company, CIOs should work with the corporate development office, business leaders, and the integration team to find and procure the best startups. CIOs: Step up to identify the startup categories aligned with your technology architecture, meet the founders of the best startups, participate in the due diligence, and integrate the technology asset and development teams.
Source: Forrester and Venture Scanner