Traditional companies "invade" Silicon Valley crazy to buy startups

The father of Netscape, a well-known venture capitalist, Marc Andreessen, wrote in 2011 that software is gradually engulfing the world and subverting major industries such as music and retailing. But now we have found another peculiar phenomenon, that large companies in the various categories of science and technology are gobbling up start-ups in the field of technology. The invasion of Silicon Valley in the past few years, traditional companies have begun to help themselves integrate into the increasingly digital world by spending on attracting high-tech talent and advanced technology. Buying good start-ups is no longer a patent for Silicon Valley companies such as Google, Facebook and Yahoo, where retail, health care, finance and even service companies are starting to notice technology start-ups that are relevant to their business. For example, Monsanto, a multinational agro-biotech company, spent 1.1 billion dollars earlier this year on the acquisition of large data weather insurance company Climate Corporation; Insurance company United Health Group (insurer UnitedHealth Group) Humedica, a health-care data-analysis firm, was bought at $ millions of, just a few weeks ago, when Under Armour, the US sports equipment brand, bought the fitness tracking application development company MapMyFitness for 150 million dollars; Ford bought the mobile apps development company Livio, and so on, at less than 10 million dollars a year. Exitround is a site that was established earlier this year to help tech start-ups anonymously look for potential acquirers, and the majority of the deals they buy are from outside the technology sector. Jacob Mullins, founder of Exitround, said: "The motivation behind these companies to buy tech start-ups is mainly because they believe that" software is gobbling up the whole world "theory, so they have to add some technology to their products. At present, 10% of the companies that make up the deal are from the top 500 companies, 20% of the companies have gone through the listing, and a significant proportion of them are from the non-tech sector. "For this group of non tech companies, Exitround will mainly provide some start-ups that are still in the early stages of development for them to review." Mullins said that there are more and more enterprise Development Department executives hope to find the market in this model of the steed ". But previously, most mergers and acquisitions were done under the leadership of investment banks. It should be noted that many non-tech executives now regularly travel to Silicon Valley and are working with venture-capital firms to establish links with some start-ups. Wal-Mart is the first enterprise to enable this acquisition model in non tech companies. "Jon Sakoda, a venture capital firm NEA Partner, said. Sakda refers to Wal-Mart in 2011 to buy softA start-up enterprise Kosmix, and then incorporated it into the company's E-commerce business unit Wlamartlabs case. After that, Wal-Mart has bought a number of technology start-ups (4 start-ups this year) in the hope of countering strong competition from the Amazon. Cowboy Ventures, co-founder and Kleiner partner of the electric business strategy, believes that future retail giants will continue to gobble up software companies themselves. Many entity retailers see the impact of E-commerce on their sales, so that companies such as TJ Maxx and hints Outfitters are very likely to spend 1.4 billion of dollars to buy some of their start-up businesses. Indeed, earlier this year, it was reported that hints Outfitters did try to acquire the nasty Gal, the recently exploded online ladies ' brand. These traditional retailers do not have a clear electric-business strategy, but they can expand their audience by acquiring start-ups. Irene Lee said. David Blumenfeld, senior vice president of retail giant Westfield, Tulum that the company is also considering strengthening its Westfield labs research and development sector by acquiring start-ups. Although Westfield is not a technology company, we believe that the difference between online and offline shopping is becoming blurred and we have to change that. We believe that, even for physical retail enterprises, technology is also a key factor in the future fate of enterprises. "In addition, Bloom revealed that companies in the world's major cities can reach up to 1.1 billion potential consumers, so the company hopes to find the right way to integrate online shopping into the physical stores." Hunter Walk, founder Hunter-Homebrew, a venture capital firm, commented: "There is a growing awareness of the need to find a strategy to maintain a deeper relationship with online consumers." Like cinemas today, they often don't know what their viewers like to watch at home. In the end, Volcker also pointed out that the amount of money taken by these companies will generally be controlled within 200 million dollars.