Published on May 14th, 2013 | by Jose Vasquez0
Yahoo! Hungry for Startup Tech Companies
Marissa Mayer, CEO of Yahoo!, has aggressively acquired new startup tech companies, reaffirming a precedent that the world needs startups to sustain momentum.
Yahoo! has been lagging behind some of its major competitors in terms of technological innovation, but relatively new CEO Marissa Mayer is hoping to change that with an aggressive and uncharacteristic campaign of buying and utilizing new startup tech businesses. Since her appointment in 2012, Mayer has acquired 10 different startup technology initiatives, setting a fast and nearly insatiable pace.
Yahoo! isn’t the only corporation interested in gobbling up smaller startup tech organizations, of course. So what is it that makes this type of acquisition so popular?
Why Startup Tech Companies Are So Appealing
There are three primary reasons why startup companies are so hotly sought after:
- They think outside the box. It’s a clichéd phrase, but it’s true. Big companies often get lost in redundant and repetitive ideas, while smaller companies have greater and more creative insights.
- They’re agile. Unlike their major counterparts, small tech companies have the ability to quickly adapt to changing markets and changing trends.
- They’re available. Most small companies are eager to grow and become a part of something bigger, meaning they’re easily available in most cases.
How Tech Acquisitions Yield Mutual Benefits
Even Yahoo!’s modest acquisitions are bought in the tens of millions of dollars. That’s a lot of money to work with, especially as a relatively small organization. For founders looking to retirement as a way out, it’s a perfect ending to the story. For founders looking to continue growing, it’s a perfect opportunity to merge with a larger organization and gain access to resources they otherwise wouldn’t be able to touch. Big companies get all the advantages of having a nimble, fresh thinking group of talented individuals while small companies expand vastly and suddenly.
Startup tech entrepreneurs should consider this as a lesson of both patience and appreciation. Understand that hard work and fresh insight eventually pay off, as even large companies are desperate to get a piece of such action. But also understand that the agile, reflexive power of startup technology is one of the most envied positions in the business world. Appreciate being in the center of it.