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Guest Writer
February 13, 2013

Guest Blogpost: Why Most Startups That Got Bought Don't Have a VC Funding

Exciting and optimistic changes are on the horizon for young entrepreneurs who are trying to break into the tech scene.

From time to time we'll publish a guest blogpost by the editors at Fueled. The first one is from Chrissy Giglio. Enjoy:

Why Most Startups that got Bought Don’t Have VC Funding: With new data from 2012, we’re able to see some interesting trends that are occurring in the world of startups. This past year there were 2,277 private technology companies acquired all around the world. From this overall number, we’re able to look into each broken down category and see what’s really going on.

According to the official report from CB Insights, out of the total number of companies acquired, 331 of them disclosed information about the finances of their deals. For 331 companies, the total price for all of them was $46.8 billion. The final total would be a great deal higher if more, or all, companies shared their financial information. Of that amount, there were only eight $1 billion dollar deals. The majority of the lot, 80 percent, of the deals were for less than $200 million. And to break it down further- 50 percent of transactions were for less than $50 million.

Beyond the price tags, one of the most interesting things to take a close look at is the fact that the majority of the companies acquired have never received any form of funding. To be exact, 76 percent of the 2,277 companies never received any form of of institutional investment before they were acquired. This number comes as a shock since many people are under the assumption that in order to succeed as a startup, you need to be backed by some financial mavens.

Generally there are many reasons behind one being interested in receiving some form of funding. An article from Forbes lists out the major reasons behind a company needing/wanting funding, as well as some thoughts as to why it is or isn’t necessary.

The fact that the majority of companies hadn’t received funding is a positive statistic that must bring hope to many entrepreneurs who are hoping to expand in the industry. If these companies are surviving and growing without any venture capital or public equity funding, it must mean that they’re doing something right on their own. The general factors that are allowing these tech startups to thrive are their profits in general and also that of angel financing (funds from family or friends).

It’s important to look deeper and see the most important factor. Startups without venture capital funding are starting to be taken just as seriously as any other startup. Having venture capital funding isn’t the only factor that pre determines if you will be successful or not. Originally it appeared that a company had potential especially if a major backer was willing to give money. Now, perhaps, it is even more impressive when a startup can succeed on their own.

It appears this may be a trend in the tech startup world as we see reported by VentureBeat. Incubator, 500 Startups, is now accepting applications to join their program. Every time prior, the new startups were chosen based off of recommendations from others- including venture firms. Now, every startup is allowed to apply and doesn’t need any recommendations from other sources to be considered “qualified”. Starting on January 31st and ending on March 1st, 500 Startups are asking those interested to apply via AngelList.

Exciting and optimistic changes are on the horizon for young entrepreneurs who are trying to break into the tech scene. Based off of how things are going, it seems like now is a good time to jump in...and hopefully not sink.

Find more insightful articles click here! 

Let’s start with the big one. Anyone who has ever moved houses before knows there are tons of tiny expenses that suddenly add up to a very expensive relocation. And that’s just for you and your stuff.

When you start an office from scratch, you’ll have to invest in everything from new furniture to office amenities. You’ll need to outfit meeting rooms and stock the kitchen. Sign a monthly contract with the internet provider. Decorate. Even if you have a lot of these things from your old office, you’ll have to hire someone to help you move it and use up hours of your time getting everything set up.

One of the best parts of moving your team into a coworking space is that most of these costs are already covered in your monthly membership. You’ll move into a fully-furnished space with everything you need to get to work, AND you’ll know exactly how much you have to pay from the time you move in. 

Read More: Everything you wanted to know about Team Spaces at betahaus

Commitment. Oof. 

In a traditional office, you’ll typically have to sign a year lease (or longer). You’ll be committing to a fixed space that won’t grow with your team or give you flexibility if things change. Unless your contract goes month-to-month, you might just find yourself in a lifelong cycle of “let's figure it out next year”.

We believe that your office should help you grow, not hold you back. That’s why our Team Spaces come with leases as short as two months. Your rates are on a per-member basis, so you can easily expand your team or take over new rooms without having to break your lease. We work beside you rather than against you to find an arrangement that gives you the comfort of a home base with flexibility.

Did we mention this was going to be easy? 

Just kidding. We definitely did.

But, look. Your space will be fully-furnished from the day you move in. We’ll have the WiFi up-and-running and printers online. The meeting rooms will be ready to go. The kitchenette stocked with mugs and freshly brewed coffee. And you’ll have the support of our coworking team. They’ll provide everything from reception to package handling to space maintenance. They’ll get you oriented in the space and make sure you have what you need to get to work.

New office without the downtime.

Some office spaces have a one-size-fits-all approach, but that's not really our style. The reason no two betahaus locations look the same is because they’re locally designed. And we give our Team Space members this same opportunity to customize their space.

Choose a room with a view of the city or one on the ground floor with easy access to the garden. Change the lighting fixture or bring your own bookshelf. We want teams to be able to white label, decorate, and really make the space their own if they want to.

And if you’re really looking to customize, Team HQs allow teams to collaborate with our architects and coworking team to create a space that is completely bespoke. Whether it’s additional meeting rooms, unconventional seating, or a yoga room, we apply our 10 years of experience in building functional workspace to your creative vision to create something that’s just right.


Probably the biggest benefit of coworking is community and events. Now we know it may not be the first thing you’re looking for as you seek out your next office space, but bear with us.

Imagine using your lunch breaks to chat with someone in your industry. Meeting freelance developers at after-work beers. Networking with investors at BETAPITCH. Pitching at our weekly betabreakfast and getting support and feedback on your new ideas.

betahaus has spent the last 10 years cultivating a community of people who we genuinely like working with. And when you join, your team will become a part of it, too.

" People matter! Community was always what we were all about. ‘’

In June we launched #PeopleInbeta - our monthly blog post series in which our Content Manager - Vihra interviewed teams and freelancers from the betahaus community to present the variety of creatives we have in ‘haus, to understand their missions and get some useful advice for our audience. We talked on topics such as sustainability (with PlanA) , decentralized digital identity (with JOLOCOM), curated music experiences (with Bespoke Sounds), freelance photography (with Sara Herrlander), full-stack development (with Obst Digital), design (with LAUDO) and much more.

Interview with LAUDO at betahaus | Neukölln
Interview with Obst.Digital at betahaus | Neukölln

"The Summer is the best time to host Backyard sessions and BBQ’s’’

In the summer, we launched a couple of new events in Neukölln like Freelancers, Unite!, The Backyard Sessions and My friend’s BBQ. 

Freelancers, Unite! developed as our productive coworking session with freelancers from in and outside the ‘haus. Once a month, we picked an important freelance topic (such as taxes, time-management, etc) and invited experts to give us insights on the topic. We saw so many new faces and had the chance to come back closer to where we started from - the freelance, grassroots culture. 

Freelancers, Unite! at betahaus | Neukölln

Another event, which started in July (and turned out to be our favourite events) were The Backyard Sessions. Organised by our queen of Neukölln - Robbin – the Backyard Sessions are our creative evenings with live music jams, movie screenings and cocktails. 

The Backyard Sessions at basement.berlin
Movie Screening at basement.berlin

This last event was hilarious because for quite some time, nobody knew exactly who organised it or invited them. The friend was throwing a BBQ for the community in the garden and this led to all our members joining and staying after for a beer or two with us.

‘’My favourite moment this year was the second friends bbq which was actually cancelled because of the rain forecast. But despite the bad weather, people show up and it turned into a super nice intimate evening with Elizaveta and Paul giving a garden concert.’’ - Robbin (Community Manager, betahaus)

''In July, it was great how the casual after-work BBQ turned into an impromptu acoustic blues jam session with Elizavetta Barsegova and Paul, who have the voice of an angel. Actually, all of the My Friend's BBQ's and Backyard Sessions were AWESOME.’’
- Paige (Head of Marketing, betahaus) 

The Garden at betahaus | Neukölln
My Friend's BBQ at betahaus | Neukölln



"As a coworking space, you have to give stage to important topics.’’

This year we released a new event format in Kreuzberg called ‘’The betaSalon’’. It's an open panel discussion which aims to give stage to important topics and give free speech on them. The fist one we did on the EU elections, last month we talked about changemakers, but our favourite one for this season stays ‘’Mother + Founder’’ where we partnered with FemGems podcast and recorded a live podcast episode for them having Madeleine Gummer von Mohl (betahaus co-founder), Kristine Zeller (co-creater of ooshi period underwear) and Luisa Hoffman on the stage.

betaSalon at betahaus | Kreuzberg

"We should fight for a more human-centered tech development’’

Every September, our co-founders take part in the Techfestival. in Copenhagen, spending a few days disconnecting from the daily life and focusing on creating a better, more human-centered tech future. This year the think tank which included our co-founders Madeleine and Max came up with the TechPledge. The Tech Pledge was made to emphasize the need for a new direction in tech. Similar to the Hippocratic oath for doctors, the Tech Pledge is a promise to make tech a force for good and ensure responsible and sustainable tech leadership. It’s a commitment to driving a new direction in technology.

Techfestival. 2019 in Copenhagen


"Startups are transforming European football as we know it.’’

One of the most exciting projects for betahausX this year (which is also continuing in 2020) is their new startup challenge called The Werder Lab - a global startup competition that aims to reimagine the way clubs like Werder work with athletes, fans and partners.



"You should leave time for the things you love most’’ 

This year couldn’t end without us having our favourite events - the end-of-the-year holiday party and the BETAPITCH Global Finals. On the 6th of December we saw the 9 finalists of the regional BETAPITCH competitions pitching in front of our jury. Congrats to Troy from Hamburg for winning the big prize.

We finished the year at our Holiday Party celebrating anything and everything at betahaus | Neukölln together with our members, friends of friends and our favourite artists from Passiflora LIVE, Tapete and Kotoe.

Love at The betahaus Holiday Party 2019


Thank you for being with us in 2019. It's been a crazy big year for us and it wouldn't been possible without your support, trust and the hard work of our amazing team. Have an amazing holiday time and we'll see you again in 2020.

With love,
betahaus

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