Not each startup can attain its full potential — or survive — by itself.
Enterprise capital places a variety of emphasis on startups reaching unicorn standing or exiting via an IPO, largely as a result of such successes are essential to creating the enterprise mannequin work. However this makes it straightforward to miss the truth that many firms would see extra success in the event that they had been acquired or mixed with different startups.
Kathryn Minshew, the co-founder and CEO of recruitment and job utility market The Muse, began occupied with this a yr in the past when her startup had been round for a decade. After a yr of floating the thought of consolidation to different focused recruitment platforms, her firm, which helps customers discover jobs based mostly on firm tradition and what they worth, made its first acquisition.
The New York-based startup introduced this morning it has acquired Fairygodboss, a recruitment platform aimed toward ladies and dealing moms. The acquisition worth was undisclosed, and events declined to touch upon it, however a supply aware of the transactions mentioned it was a mixture of money and inventory. Fairygodboss is producing about $10 million in yearly income, which infers the acquisition worth was presumably favorable.
Minshew mentioned it will seemingly be the primary transaction of many for The Muse as a result of the recruitment tech area is in dire want of consolidation.
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