Financing Acquisitions with Venture Capital

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By Paul Edmondson


The general rule is vc firms fund companies for internal growth, not to fuel growth from acquisitions. If an opportune acquisition comes along it should still be considered. But it should be highly complementary to the existing business.

There have been venture funded companies that were put together to do a string of acquisitions and then go public. Marchex is one example of such a company. With Marchex they used venture money to buy three companies and go public quickly.

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bradwrage profile image

bradwrage  says:
3 years ago

What is the best way to go about getting funding before the step to vc?

NightFlower profile image

NightFlower  says:
3 years ago

I hadn't chatted at you in a minute Paul. Wanted to drop by and say hi and gush over the pic of your beautiful, precious little baby girl *I adore babies*. This subject you speak on here...out of my element but I'm coming back to read cause I could use learning more on the information - smile. Talk to you soon.

Blake Glenn  says:
18 months ago

Marchex is an interesting company. They seem to combine domain names with advertising platforms. This seems similar to what Richard Rosenblatt is trying to do with Demand Media. He's raised over $100 Mil. for that venture

Also, the concept of getting VC in order to implement some fast strategic consolidations and then go public was also referred to as "roll ups" in the 1990s.

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