Venture Capital

Hybrid VC Model: The Preemptive Buyout

02.25.08 | Comments

A week or so ago on Techcrunch I came across this post:
hybrid VC model early preemptive buyout venture capital techcrunch

It got me thinking to another variation of a hybrid VC model that could be used. A  VC could conceivably invest in “good scouts” who could scour the trenches for really promising upstart technologies. A VC could then get in early enough to buyout the technology at a great price and swap out the team with a pre-assembled all-star team.

This all-star team and product would then be owned entirely by the VC firm (or with some equity split) could then see the company through to a major buyout. The key would be to identify technologies that are a good fit within certain conglomerates, say a technology likely be snapped up by a Google or Microsoft.

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A week or so ago on Techcrunch I came across this post:
hybrid VC model early preemptive buyout venture capital techcrunch

It got me thinking to another variation of a hybrid VC model that could be used. A  VC could conceivably invest in “good scouts” who could scour the trenches for really promising upstart technologies. A VC could then get in early enough to buyout the technology at a great price and swap out the team with a pre-assembled all-star team.

This all-star team and product would then be owned entirely by the VC firm (or with some equity split) could then see the company through to a major buyout. The key would be to identify technologies that are a good fit within certain conglomerates, say a technology likely be snapped up by a Google or Microsoft.

Comments to “Hybrid VC Model: The Preemptive Buyout”

  1. Darren Herman - Marketing, Advertising, Media and Technology Blog » Blog Archive » links for 2008-02-27 Says:

    […] Leveraging Ideas » Hybrid VC Model: The Preemptive Buyout: Sam Huleatt - Social Media, Venture Capi… A VC could then get in early enough to buyout the technology at a great price and swap out the team with a pre-assembled all-star team…. though this is not the business VC’s are in. (tags: venture capital rupture sam) […]

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