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Why large companies acquire small companies

A Smart Bear: Startups and Marketing for Geeks

It was said that Facebook drastically overpaid (a billion dollars for a company with fanatical users but zero revenue) but also that that Instagram was stupid to sell so early (because after more “inevitable” growth it would be worth much more, and would “inevitably” be bought or go public at that larger valuation).

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Weekly FIRGUN Newsletter – March 7 2025

VC Cafe

Anthropic has just raised $3.5bn in a round at a post-money valuation of $61.5bn. in funding and a combined valuation of $4.6T. Sesame has introduced hyper-realistic AI voice models, Maya and Miles, under their Conversational Speech Model (CSM). T-Mobile and Perplexity are teaming up on an AI phone. Startup funding -20% YoY to $19.3B

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Good Times Ahead for VC-backed Tech Companies?

Both Sides of the Table

Pure Digital to Cisco) but that even the 2nd largest will get much lover valuations. Another big driver according to Montgomery is that the tech industry has matured and is returning to its vertically integrated roots. As a result the bigger buyers will look to fill gaps in their vertically integrated offerings.

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The Booming Voice AI Landscape: A VC Perspective

VC Cafe

But substantial investments are also being deployed into emerging startups, particularly into vertical applications. Vertical Applications Taking Off. A large portion of the funding and innovation in voice AI is concentrated on applications for specific industry verticals. This includes OpenAI’s latest round of $6.6

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The Anti zoom

VC Cafe

billion dollar valuation and has raised 170 million dollars in total merely eight months after its launch — making the British company arguably the fastest-growing startup in Europe. Vertically-focused startups design products to better meet the needs of particular user segments. Here’s his full list of Verticalization of Zoom ).

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Spectacles and $SNAP’s $20B Valuation

Austin Startup

In summary: Snap’s current business doesn’t justify a $20B valuation. How can one justify a $20B valuation for Snap? The product that could most likely justify Snap’s $20B valuation is Spectacles. But if it can’t, it’s going to take Snap a long time to the achieve financial performance necessary to sustain a $20B+ valuation.

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Can You Trust Any vc's Under 40?

Steve Blank

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.