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The massive cash reserves of Google, Apple, and Microsoft are good news for startups.

• marclove 16y ago
  Good news for some startups. Not any that are looking for investors. At that average acquisition price, most investors would be disappointed.
  • waxman 16y ago
    Not really. For VC's perhaps that is the case, but for angels: $1 MM raised at a $3 MM pre, 2.5 years of work, and a (let's say) $12 MM median sale price? I think everyone is decently happy. This model fits with the ever-shrinking capital requirements to launch a tech company. Conversely, portfolio strategies that rely on huge exits (and huge investments) are increasingly threatened.
    • timcederman 16y ago
      But if $12 MM is the median sale price, then the risk no longer makes it worth it, especially with so many >= $5m valuations at the moment.
    • marclove 16y ago
      $1M at a $3M pre with a $12M acquisition means I'm getting a 3X return on my investment. Now that's certainly better than losing it altogether, but I think almost all angels would admit they'd be pretty disappointed in that outcome.