More Exits With Less Capital

Interesting trend that more startups and new companies are being made with less capital needed. Most exits happen even without VC investments. This says a lot that new businesses can be successful with cheaper and more efficient development cost.

ZDNET reports:

A total of 2,277 private tech companies from around the globe were acquired last year, according to a new report by researcher CB Insights.

A “big surprise,” according to the company, is that 76 percent of these firms had not raised venture capital or private equity. This, it said, suggests a lot of tech companies are able to sustain themselves on profits and other sources, such as angel financing.

The value of most of the acquisitions was never disclosed by the buyer. However, 331 of the buyouts were made public, and totalled $46.8 billion during the year.

Over 50 percent of the companies were acquired for less than $50 million, and 80 percent of the startups sold in 2012 went for less than $200 million. Just eight were valued at $1 billion or over.

Google and Facebook were the most active acquirers during 2012, with a total of 12 acquisitions apiece for the year. Google and Cisco were the most frequent to disclose the value of their acquisitions.


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