The Art of the M&A Exit

Over at Forbes, Alejandro Cremades interviews Duke Rohlen – you may not have heard of him, but it turns out he has successfully grown and exited four medtech companies for a total of over US$1 billion. Thinking about potential exit strategies from the very beginning is key, alongside building integrity and trust with all parties. The trick is that Rohlen puts the business model first, then the team, and the technology last – often the opposite of what a lot of entrepreneurs do.

Read more here:
https://www.forbes.com/sites/alejandrocremades/2019/04/09/this-entrepreneur-sold-4-companies-for-over-1-billion-following-these-3-steps

Product-Market Fit

In the perennial argument around whether the product is more important than the team, or the other way around, this article by Marc Andreesen (of Andreesen Horowitz fame) from 2007 makes a strong case for arguing that the product-market fit is the only thing that matters. This reorients the discussion towards developing and building a market – it doesn’t matter how cool or shiny the technology behind the product is, and a strong team can waste a lot of time, if they are pointed towards a market that simply doesn’t exist or does not want the product. Read the article here: http://web.stanford.edu/class/ee204/ProductMarketFit.html

Build First, or Validate First?

Ren Butler offers some analysis over at Startup Daily about one of the common questions for very early-stage start-ups – given constrained time and resources, do we build the technology and product first so we have something tangible, or do we go out and validate the market first so we know if there are customers? Validating the market can be a scary proposition for new entrepreneurs, but it’s a critical step for improving the likelihood of success in a venture, and for wooing investors. Read more here: https://www.startupdaily.net/2019/02/how-to-validate-your-idea-before-you-build-and-avoid-a-world-of-hurt/

Insurance and Tech Startups

Law firm Simmonds Stewart has partnered with Delta Insurance to write an article about when and why tech startups should get insurance. It’s often one of the last things that entrepreneurs think about (a grudge purchase), and people assume that as long as nothing goes wrong they’ll be fine. But when something goes wrong, in start-ups those errors can be extremely costly and be on a big scale – insurance is a lifesaver! Read more here: https://simmondsstewart.com/blogs/navigating-insurance-in-the-tech-sector/