Acquiring a company from a Startup Studio/Venture Studio

by a searcher from University of Pennsylvania - The Wharton School

3 years ago

How do people think about acquiring pre-revenue companies that have been incubated inside a Startup/Venture Studio or another company? 

Seems like there is a lot of potential there to get a de-risked yet high growth company in need of an execution team and capital; though runs counter to the revenue/EBITDA preferences of typical for Search Funder.

1 like
126 views
6 comments

searcher

Being pre-revenue they don't have any real validation of their business model. Just because they're incubated they are no less risky than all other startups. I may invest, but I'd never acquire pre-revenue. Why do they need an execution team? Why are they selling? Red flags for a financial acquirer.

2 years ago | like reply | 0 likes

investor from Harvard University - Harvard Business School

^Searchfunder member‌ would likely be a good person for you to connect with.

3 years ago | like reply | 2 likes

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