> Even if you're determined to stay private, where will your sustaining revenue come from, especially if you're running a consumer-oriented web service?
The same place it would have if you got acquired. You've got to monetize the thing eventually, right?
You can also cut the same kinds of deals w/r/t synergies that you would as an internal business unit. C.f. HotorNot, TripAdvisor.
Suppose you bootstrap a company or take a small amount of investment with the goal of creating an on-going business (i.e. the exact opposite of "built to flip").
You need to focus on making money sooner rather than later.
OTOH, if you're acquired, not only do you have more time to figure it out, but you have more resources at your disposal.
The same place it would have if you got acquired. You've got to monetize the thing eventually, right?
You can also cut the same kinds of deals w/r/t synergies that you would as an internal business unit. C.f. HotorNot, TripAdvisor.