Re:The Sudden, Mysterious Exit Of A Quora Cofounder Has Sili...
by rdl on Tuesday October 02, 2012 @08:14PM
(#4605115)
Ugh, "industry/strategic investors" tend to suck a LOT, at least for early stage. Google doesn't suck, Google Ventures sucks. Intel doesn't suck (in most ways), Intel Capital is ok but would have to be amazing to be as good as Intel is at chipmaking, etc.
Cisco, which has one of the best acquisition strategies of all times, isn't a VC -- you go outside to get VC, even if your staff and product is all stuff people from within Cisco mostly thought up (which some investors have complained about)... if it goes well, Cisco is a natural acquirer.
The problem with taking a strategic in your first round is that there's an implied option preventing any other strategics from investing later or buying you out or in some cases even using your product (especially if adopting your product has a large investment/risk).
Cisco, which has one of the best acquisition strategies of all times, isn't a VC -- you go outside to get VC, even if your staff and product is all stuff people from within Cisco mostly thought up (which some investors have complained about)... if it goes well, Cisco is a natural acquirer.
The problem with taking a strategic in your first round is that there's an implied option preventing any other strategics from investing later or buying you out or in some cases even using your product (especially if adopting your product has a large investment/risk).