Getting snapped up by or absorbed into a larger entity validates the company’s growth path and allows them to do better work on a more extensive playground. But what happens when the merger is between startups?
Startups, by definition, are typically still feeling their way into their industry. While some will be further along in their vision and execution than others, their very recognition as startups presupposes that they are still in the planning stage.
Despite this, a startup merger can be an excellent idea for various reasons. A startup's merger is well worth considering for counterparts looking to accelerate their growth, surveying alternative ways to scale, or simply exploring how to craft a better MVP.
Quite a few laws and regulations must be closely observed for a felicitous merger, most notably: