Burrp’s possible merger talks with MIH; and a few questions for Indian startups

September 24, 2007

By sinha

Contentsutra reported this first, and the same has “almost” been verified by a friend of mine.
While we wait for the story to unfold, let me ask you guys a few candid quesion:

Burrp is just a few years old company and is not yet the # 1 (they have some traction, but definitely not #1). Don’t you think that the founders are in a hurry to sell it off (i.e. if the story is true)?
Most of the India based startups look for early exit. Do you agree?
Or is it that the long haul companies can come only from the biggies (like Reliance), with huge monetary muscle power?
Are 99% startups started for the sole reason to be acquired?
Will you anymore believe in founder’s statements that “We are here for long term. We are not looking for short term benefit” and other blahs?
If the Burrp+MIH deal is true, will you still be active @ Burrp?

I look forward to your comments.

Also see: Five points to ponder before joining a startup.

burrp

Tags: burrp, mih acquiring burrp

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rAm

i like burp and am a "Consumer" on that site. I will continue using it as long as it continues to engage me in the same/better way. But this is big question? (read Samit's comment).

Coming to the big picture:
i) I don't see anything wrong with me-too products. and a strategy of acquisition as exit.
ii) Considering the biggies are trying to play in every field in the Indian Market, the smaller folks will find it difficult. It's clearly a David vs Goliath. The David's do have a chance if they play smartly. (which i find lacking, remember tech. is not everything).

Avinash

Burrp is good..but not a great site..

Samit

"And who says that a product necessarily stop building once they are acquired? " - Looking at the quality of products MIH has built (or promoted), I am not too sure why Burrp will not face a similar fate

Anyways, I believe the questions raised in this post goes beyond Burrp/MIH deal

burrperno1

Burrp really rocks and I know they have a lot of fan following. If they continue their good things, I will continue to be a loyal review person

Sharath Saxena

Enough idealism. Let's applaud a team that had the guts to execute, not only to dream. And who says that a product necessarily stop building once they are acquired? This may give them enough muscle to not only continuing to build really cool stuff, but also to stomp on the competition.

Arunava

Ram, when you show your biz plans to VCs, you NEED to have a slide for exit plans. It's the fact that most of the startups are started with great vision (and passion), but looking at the practicality, one needs to plan for exits as well.

Ram H. Viswanathan

Vijay, I'm fine with it ending up as an acquisition - that happens a lot in business (as you also indicated).

My contention is that when someone starts a company for the express purpose of presenting it as an acquisition target, the chances for that company to really drive innovation are low if not non-existent.

Vijay

Well there is only 1 google and 1 yahoo...how many startups really have the balls to carry on, on their own?
The truth is that startups get some cool ideas, they execute those ideas , but most of the times they fail to take the idea to the next level, i.e. say IPO.

Merging into a big corporate is how most of startups end up with - that's the reality

Ram H. Viswanathan

"Are 99% startups started to be acquired?"
That would be really unfortunate... if the exit goal is acquisition, chances of a groundbreaking or disruptive product/service/solution appearing from that startup are low.

As Mahesh says in the previous comment, most would end up being me-too guys with a few small innovations or tweaks on the same solution.

Imagine what might have happened if Google had sought Yahoo! as a buyer. That's like $174 Billion in market capital that wouldn't exist today!

Mahesh

"Most of the India based startups look for early exit. Do you agree?". Wait a minute, this is [india] not a silicon valley that startups creating creative and innovative products that look for lucrative exit. All indian startups are me too products and there is no reason to acquire them. Let them alone travel their own path.