Why There Aren't More Googles
21 hours ago
- Startups that reject acquisition offers often achieve greater success, with larger offers or IPOs later.
- Google and Facebook stayed independent because acquirers underestimated their value, not just idealism.
- Venture capitalists are overly conservative, driven by consensus, and miss truly bold innovative ideas.
- There is a funding gap between early seed rounds (e.g., $20k) and large VC rounds (e.g., $2M), leaving promising startups needing ~$200k underserved.
- The declining cost of startups creates an opportunity for new investors to fill this gap by making smaller, bolder investments.
- VC firms resist adapting to smaller investments, but evolving models could produce more breakthrough companies like Google.