Not every startup. It can reach its full potential – or survive – on its own.
Venture capital pays great attention to startups reaching unicorn status or exiting through an IPO, primarily because such successes are critical to making the venture model work. But this makes it easy to overlook the fact that many companies find more success if they are acquired or merged with other startups.
Kathryn Minshew, founder and CEO of recruitment and job application marketplace The Muse, started thinking about it a year ago when her startup turned ten years old. After a year of floating the idea of merging with other targeted recruiting platforms, her company, which helps users find jobs based on company culture and values, made its first acquisition.
The New York-based startup announced this morning that it has acquired FerrygodBoss, a recruiting platform aimed at women and working mothers. The purchase price was undisclosed and the parties declined to comment, but a source familiar with the transaction said it was a mix of cash and stock. Fairygodboss is generating about $10 million in annual revenue, which is believed to be a good purchase price.
Menshew said this could be the first transaction of many for Moses because the recruiting technology space is in dire need of consolidation.
