Venture Capital

Hybrid VC Model: The Preemptive Buyout

02.25.08 |

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.

Welcome to LeveragingIdeas! If you're a cool person interested in technology, startups or entrepreneurship I strongly suggest you CLICK HERE to receive new posts via RSS. Thanks!!

Add to:
| Digg it | Reddit | Slashdot

« How Consulting Paid for 50% of my MBA
» Nominations Closing!
Copyright © 2005-2008 Leveraging Ideas. All rights reserved.