Tomasz Tunguz - How M&A Fosters Innovation
Tomasz TunguzVenture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How M&A Fosters Innovation
Recently, Thomas Laffont of Coatue highlighted a non-obvious impact of the M&A slowdown after this preamble :
This point is clear & straightforward. Less demand for an asset decreases price. 2023 & 2024 are two of the three lowest in the last 12 years in both activity & value across the ten largest strategic software buyers. 1 But this second point captures a non-obvious second order effect :
If no major incumbent can acquire a smaller company for fear of antitrust, all the incumbents can breathe : they can decide to build an a competing product with less risk of being outmaneuvered. The other major technology companies are just as hamstrung. Admittedly, this second-order effect is less prevalent at the leading edge of AI. Amazon, Microsoft, & Google have structured “acquisitions” that aren’t M&A : they hire the core team, license the technology, but the majority company continues to operate as a separate entity. If it sounds unusual, it is, a beefed up asset-sale at billion dollar valuations. However, these types of regulatory gymnastics are not worth it for every transaction & they are now facing regulatory scrutiny.. If a supermajority of acquirers in purchasing potential are sidelined, the urgency to innovate is lessened. That’s why a vibrant M&A market is essential to innovation. 1 PitchBook data of the top 10 most active US venture-backed software buyers across the last decade. |
Older messages
Fulfilling Crypto's Original Promise
Thursday, October 3, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Fulfilling Crypto's Original Promise Visa announced their
Where is the Budget for AI Coming From?
Tuesday, October 1, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Where is the Budget for AI Coming From? Morgan Stanley
Would You Listen to AI Generated Podcasts?
Monday, September 30, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Would You Listen to AI Generated Podcasts? Recently, Google
Interwoven with Initia
Wednesday, September 25, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Interwoven with Initia Like in web2, building an app on a
AI Advantage for Startups : Changing the Workflow through Services
Monday, September 23, 2024
Tomasz Tunguz Venture Capitalist If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. AI Advantage for Startups : Changing the Workflow through
You Might Also Like
The Sunken After and The Golden Surge 🪸
Tuesday, October 8, 2024
Plus we ain't no fools͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
POV: you're a solopreneur living in Florida
Tuesday, October 8, 2024
Read time: 1 min. 03 sec. Guys—Hurricane Milton is heading straight for my house. 😬 First off, this is serious. I hope everyone in the impact zone stays safe. 🙏 But you know me—I'm always looking
[CEI] Chrome Extension Ideas #161
Tuesday, October 8, 2024
ideas for Amazon, Music, Stress, and Content Creators ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
What if you could edit like Spielberg? 🎥
Tuesday, October 8, 2024
Meet Eddie AI—your new editing partner ready to bring cinematic flair to every cut! ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Whoa. Stunning multiple
Tuesday, October 8, 2024
Plus, LOI mistakes + when to get a lawyer ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
this is today
Tuesday, October 8, 2024
join me for a live run through of the state of venture – and what to expect next Hi there, Benjamin here, Senior Lead Analyst at CB Insights. Wanted to personally invite you to this State of Venture
Growth Newsletter #215
Tuesday, October 8, 2024
It's not all about the CPM and CPC ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Why cash is king
Tuesday, October 8, 2024
The first set of results from our inaugural compensation survey reveals the need for stable income above all else ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
🚨 Brutal statistic
Tuesday, October 8, 2024
All because of lack of validation Hi Friend , It's a brutal statistic: 90% of ecommerce businesses don't make it past the first few months. If you're anything like the ambitious founders we