4 ms·
Contrasting perspective: Founders like you describe are likely mythical. Don't exist. Not a single one in the world... at least if you mean founders of possib
by emn13 7y ago
Contrasting perspective: Founders like you describe are likely mythical. Don't exist. Not a single one in the world... at least if you mean founders of possibly competing firms.
To be able to compete with the likes of google, you're going to need considerable scale - there's going to be a lot of up-front investment necessary to get there. And that means they need to "sell out" to outside investors to get anywhere. The kind of people that are really fundamentally opposed to any kind of takeover by any large tech firm probably won't pass this hurdle. The people that do pass that hurdle probably are more successful precisely because they're more pragmatic. And in any case they'll be giving away some amount of control in the process, and may need several rounds of funding... it's pretty far-fetched to assume any business that survives that kiln will really have the (self-harming!) principles to oppose a lucrative takeover and retain the control to too.
It's always possible somebody will find some really overlooked niche, grow big there, and then expand from there... but it's a really, really long shot, and certainly unlikely enough that this is never going to add up to significantly increased competition in the sector. Even if by some surprising happenstance one or two new competitors emerge like that... that's still a very, very inefficient basis for a market. We need hundreds of competitors (or at the very least no barriers to entry for hundreds of potential competitors) - not just a handful - for a market economy to do its optimization magic. A few plucky founders just don't matter.
- jasode 7y ago>Founders like you describe are likely mythical. Don't exist. Not a single one in the world... at least if you mean founders of possibly competing firms. If that were true, both Larry Page and Mark Zuckerberg would have said "yes" to billion dollar offers from Yahoo and therefore both Google and Facebook would have become subsidiaries of Yahoo. Well, we know that didn't actually happen and Jerry Yang is not the boss of Larry Page and Mark Zuckerberg. Startup founders saying "no" to potential acquirers is not a myth.
- mamon 7y agoSaying "no" is only possible if you haven't taken significant VC money yet and excercise full control over the company. Otherwise your investors will often force you to say "yes" to aquisition because they want to cash out. EDIT: I think it is also highly dependent on the market you're trying to enter: if you are creating a new niche for yourself, like Uber did back in the day, then investors might be willing to take you all the way to IPO. If you try to compete with the existing market giants, like Facebook, they will chicken out, and see aquisition as only viable option ("if you can't beat them, join them").
- emn13 7y agoIf they had started a business in 2019: then yes, indeed, that likely would have been the outcome. But they didn't, did they? The barriers to entry are much, much higher now; and the vested interests seem more keen on acquiring new ventures before they becomes threatening.