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.
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