|
|
When selling up becomes selling out
What's the difference between selling up and selling out? In theory, the difference between the two is simple.
Imagine a graph that pits the amount of money you get against the fulfilled potential of your idea: selling up is
when you make a deal at the top of the curve, selling out is leaving at an earlier - sometimes much earlier - point.
Like most of us hopeless optimists, Tom Foremski, the former Financial Times reporter who now runs the popular blog
Silicon Valley Watcher, (siliconvalleywatcher.com) isn't a fan of sellouts. And he's particularly annoyed with those
who have an idea so good that it could really threaten existing players. It's something he calls "blackmail"
innovation: threatening to stir things up with a revolutionary technology before selling it to the very people you
were planning to line up against the wall. These startup thugs, he suggests, simply hold companies to ransom rather
than aim to fulfil their potential. It's a form of hi-tech heist.
According to Foremski, Ribbit - which simplifies communications between computers and phones and sold itself to BT
for £53m last week - was a perfect example of blackmail innovation in action. Here was an idea that pitched itself
as an industry-destroying disruptor (the company's tagline was "Silicon Valley's first phone company") before
eventually swooning over the size of the sum it got.
On one hand, it's a fair comment, but on the other it's a tough point to argue - particularly since the place where
the line gets drawn can shift depending on where you are standing. For some companies, selling for a million quid is
a great idea; for those with the chance to be the next Microsoft or Google, anything short of world domination is
giving in too early. Offering your telecoms business to BT might seem like feeding your baby to a shark, but not all
those accused of being sellouts are ditching their optimism. What happens if the purchasing power is, in itself, a
disruptor?
After all, when Google flexes its muscles and buys a young, innovative-looking company, it can be hard to tell if
it's acting as an incubator for change or just a crusher of startup dreams. For every Dodgeball or Jaiku (parcelled
off and stuck on a shelf) there's an Applied Semantics (now the cornerstone of Google's profits). Whether it's a
|
|