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!
From 8pm on, we'll open The Club where the DJ booth and the dance floor will turn into our playground. We've invited hip hop and pole dancers to open the dance floor and have a friends-only crazy-cool lineup planned for the night. We'll be mixing botanical cocktails with Fritz Cola and inviting you into our Photo Booth Room so you can take home some silly photos from the night. In The Club, you will also find The Balloon Room and The Zen Zone which will be our chill spot for the night. Check out the timeline in The Club and learn more about The Zen Zone below.
20:00 - 22:00 Dj Niggo
21:00 - 22:00 Hip-Hop Dancers
22:00 - 22.30 AinTheMachine
23:00 - 01:00: Michal Vagner
01:00 - 03:00: Asia
The Zen Zone
(to be announced): Cacao Experience with Moruga Cacao
19:00 - 21:00: Tea Ceremony with Thirsty Moon
Make sure to join our Facebook Event and RSVP on Eventbrite, so we can put your name into our Happiness Jar. This birthday bash is all about our community, and together with our partners we've prepared a special Prize Draw.
Throughout the whole night, you will find the rooms of The Basement filled with art pieces from our favorite Berlin-based creatives. From illustrations to paintings to wooden sculptures and installations - we've made sure to host an inclusive Berlin-like mix of all things art. Let us introduce to you to some of the artists, who you will meet down in The Basement:
Have you met .. the Softblobs? Since moving back to Berlin from the US, Gesine Krätzner has been making strange creatures out of fabric that she calls Softblobs. They are cute, random, and they'll be waiting in The Basement if you want to try playing around with them.
From toys made of fabric, we’re moving onto wooden sculptures. Matt Danko knows how to bring wood to life and does it amazingly in his free time. In The Basement, he’ll show his latest furniture pieces and sculptures.
In the same room as Matt, you’ll find Lisa Büscher, who has prepared for us a hyper realistic sculpture presentation that gives it the touch of the extreme, surrealistic and absurd. She de- and reconstructs and reorganizes human bodies like Utopia does society.
Colette is a Berlin-based creative working in photography, art direction and set design. Through her visuals she explores intimacy and anonymity. The space that falls somewhere in between.
Ocean. Now! is a collective that accelerates ocean protection. They work with different types of art to motivate our society to protect the Ocean -Now!
In the early afternoon, based in The Garden, you’ll meet Amaury BOUQUET. He’s a Berlin-based French artist from Saint Maur des Fossés, who has a background in social innovation and loves to play with symbols in his works. At 10 Years in beta, he’ll do his special Humanist Tarot readings from 4-6pm.
Parallel to him, also in The Garden, Sebastian Olivares will be painting live a special Mandala created for betahaus. Sebastian is a Berlin-based visual artist who specializes in painting mandala murals and has painted murals in Germany, Chile, Australia and Thailand.
Throughout the day ilan katin will be putting the party vibes onto a mural, specially created for betahaus. He's a Neukölln-based artist with experience in visual work, both static and performative, graphic design, illustration, comics, installations, animation and live video.
We think this one speaks for itself. If you need a little glitz or glitter to get you into the party spirit, come early and we'll do the rest.
Last, but not least, special thanks to our lovely partners who are helping us making this event happen.
Pilsner Urquell and Fritz Cola for the drinks, Emmy, Drivy, FrameRight, CoffeeCircle, Dream Facilitation, Moruga and BioWine for supporting our Prize Draw and our media partners from Silicon Allee, ASK HELMUT, Creative City Berlin and TechCode.
Chrissy is a turtleneck wearing, interior design enthusiast who is made up of approximately 90% iced coffee. When she's not writing, you can find her walking at a snail's pace through a museum or taking photos of understated architecture throughout Manhattan.