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> They sell to megacorps to make money, not to scale their product I should have been more explicit. Scale is the arbitrage opportunity exploited by megacorps:
by sangnoir 6y ago
> They sell to megacorps to make money, not to scale their product
I should have been more explicit. Scale is the arbitrage opportunity exploited by megacorps: Buying an upstart at $X means they project that they can make a multiple of $X out of the transaction, based on their ability to scale (or integration with other products). If smaller team could easily make the same multiple of $X, then they wouldn't sell at $X.