Building on Engine’s previous research on the role of acquisitions in the startup ecosystem, Engine today released a report examining the ways that acquisitions are a critical component of the startup ecosystem, featuring over a dozen startup founders, investors, and accelerators.
Startup acquisitions make up the overwhelming majority of successful startup exits, and the founders—and founders turned investors—underscored the many benefits of acquisitions, especially for facilitating virtuous cycles of capital and talent through the ecosystem. Their experiences illuminate Engine’s research showing that when a startup exits, that capital (and knowledge) shows up as investment in new startups. And acquisitions create many other benefits, including for improving equity, with Preston L. James II, the CEO and Cofounder of DivInc, noting that over time, the dynamism enabled by acquisitions “builds generational wealth and fosters an ecosystem that helps diverse communities to prosper.”
You can learn more about the role of acquisitions in startup ecosystems by reading the founder’s stories here.
