PayPal Startup Blueprint, by PayPal, is a global program that provides innovative startups with tools needed to grow and succeed. 

Holland & Knight is a global law firm with more than 1,000 lawyers and other professionals in 20 U.S. offices, as well as Bogotá and Mexico City. Among the nation's largest law firms, Holland & Knight provides representation in business, litigation, real estate and governmental law. Our Venture Capital and Emerging Companies Team advises a broad array of emerging companies on a local, national and global scale through each stage of their life cycles.  Our clients are engaged in a variety of technology-related industries.

There’s a Liquidity Crunch and It’s Acquirers’ Fault, says Adeo Ressi

Posted by Jonathan Greechan on 2013-05-30

While access to capital, cheap technology, and more have led to the proliferation of many new technology startups, the number of acquisitions has not kept up with the blistering pace. There are many debates as to why, but whatever the cause, the growing popularity of acqui-hires and relative reduction in corporate M&A could lead the startup ecosystem down an ominous path.  

Adeo Ressi, Founder & CEO of the Founder Institute, was featured on peHUB today where he discussed this "liquidity crunch", who is to blame, and how it can be fixed. Adeo likens the current startup climate to a "house of cards that will collapse" if there isn't more corporate M&A.

 

“Look at the facts,” he says. “You’ve got a ton of small companies that have consumer and business mind share. And you have a ton of large companies seeking relevance that have a ton of cash.” If the big companies would shift a “little bit” more of that cash toward acquiring more of those small companies, it would “create more liquidity and a more sustainable growth pattern.”

 

To read the full article on peHUB by Connie Loizos, click here

Like this article?

Subscribe to our NewsletterAttend a Free Startup Event

Feedback Form

We welcome your feedback to improve the Institute. Please contact us using the form below, and we will get back to you promptly.
Your Email Address:
Message to the Institute:
What is ? (enter the answer below):
Close Window