Veteran VC says the outputs are powered by “talent, technology and traction”.
Today Priti Youssef Choksi is a partner of the venture company Norwest Venture Partners. Previously, she worked for Google for five and a half years, where she worked on strategic partnerships, and for almost nine years on Facebook, where she started developing the company and later focused on M&A.
Because Choksi knows first-hand how some of the world̵
Where should I start? Choksi suggested that people first understand the build, partner, or buy mentality of large acquirers. While outsider deals can look very similar (a deal is a deal is a deal), they are not. First, large companies will build internally when they strengthen a strategic asset or when they need sensitive information or technology. A good example of something that Google For example, I would never buy search technology because search is the company’s crown jewel, she noted. Meanwhile, companies will band together to close a product or service gap, or to build a new platform, she said, referring to the beginnings of Google’s Android ecosystem.
When they finally go shopping, businesses are driven by three things, Choksi said: talent, technology, and traction. As you can imagine, talented companies can do an Acqui Hire to fill a talent or leadership gap internally, or to acquire niche skills that their current employees don’t yet have, she said.
Companies are now buying by technology when they need external technology to increase their organic efforts. Choksi showed an example on Luma.io. In 2013, the young company that created an app for recording, stabilizing and sharing videos was taken over by Instagram (which was already owned by Facebook). A week after the Luma contract was signed, Facebook launched a video on Instagram, which is largely based on Luma’s platform.