It is truly amazing when you are the Founder of a Company how many times you are approached by Venture Capitalists who have funded your competition and wish to buy your company. They wish to use such an acquisition to grow their market share without earning it. Indeed such a strategy is worthy of mention and yet these Venture Capitalists are often arrogant and assume everything is for sale.
Somehow they believe they can buy their way into success. They fail to understand that winners and losers in the market place are due to customer services, bundling, pricing, marketing and delivery on said promise. May I please ask what on Earth would a Venture Capitalist know about that?
Additionally if something is not for sale, it is not for sale, you see? A company at the top of their game, with good cash flow can outlast a Venture Capitalized company and their funded companies until their burn rates catch up with them. We all know that under funded companies generally do poorly in the market place and I would submit to you, so do over funded companies with poor discipline to customer service and the bottom line.
Should a company sell out to the Vulture Capitalists? Well, only if they make an offer one cannot refuse, but more often then not, I sure had a great time of swatting them out of the sky and smushing them into the Earth. Venture Capitalists and their persnickety young arrogant executives are living in a completely different world to those of use who live in reality. Consider this in 2006.
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