> My theory is that 500 2 person companies have a worse chance at making a real splash than if the 100 best ideas from that group had 10 good people working on them.
I wonder if there is an opportunity for matchmaker investors to scoop up like-minded startups and consolidate early companies to build those 100 10-person winners.
I often think that if I had $500M, I could buy 4 companies whose assets and teams combined with ours would create a company with massive potential, huge remarketing opportunities and defensibility that the companies alone do not have. There is definitely an opportunity to do this in theory. The issue is the problems that arise when you merge 5 companies with different cultures, strong-headed leaders and passions for solving problems that the new company may not find as much value in addressing.
That's an interesting idea. It might be fairly expensive to scoop them up, though, since they could reasonably expect to get a good amount of funding for their own idea.
I wonder if there is an opportunity for matchmaker investors to scoop up like-minded startups and consolidate early companies to build those 100 10-person winners.