Built To Be Bought (Bubble 2.0)

a wise investor once told that companies are not sold but rather that they are bought, and I've layered onto that subtle but significant comment my own observation that companies only get bought when they are executing on their business plan and are a threat/opportunity to a potential acquirer. That's why I've never bought into the notion of building a company for acquisition, it's like trying to time the public markets, in the end luck is always more important than skill.

Link: VentureBlog: Built To Be Bought (Bubble 2.0).

If companies are indeed again being built for acquisition rather than independence, venture investors are in for a rude re-awakening (that will be precipitated by a very loud popping sound). While a few companies being built for acquisition will be acquired, the vast majority will ultimately run out of money and be shut down (particularly as each new Web 2.0 idea doesn't just spawn one company but three or four).