notes: growth model + the innovation multiplier, see section 8 of model thinking. it taught me more about how startups are able to innovate so quickly and why large companies (who are already far along in their growth) require acquisitions.
It also helps me understand how those acquisitions can help growth. (small town entrepreneurship grants and capital are taking on risk by subsidising R&D for large companies.)
What are startups really doing? We are a part of this sort of distributed research and development service for large companies. That is, independent firms give us capital to perform R&D that probably should be funded by the acquiring company, but isn't for whatever reason (acquirer can't allocate resources due to risk) so, the burden of that risk is shifted to us, the entrepreneurs, and our investors, who somehow can bear that risk because they are properly diversified. The acquiring companies have to be good at absorbing this new, external innovation, without smothering it. Read this: http://www.forbes.com/sites/mgiresearch/2014/03/04/the-future-of-venture-capital-tech-valuations-and-the-fate-of-tech-incumbents-conversation-with-bill-janeway/
Ok, great, how do we become a valid acquisition target? I'm not sure. Let's talk about a TSLA analysis.
Their market is ev's, power train, batteries, IP, and engineering.
Look at their suppliers, first. Look at their patent portfolio.
Figure out their licensing deals (what tech do they buy? what tech do they sell?)
Look at their general numbers.
Look at appl and how they can benefit from battery tech. Look at all industires who can benefit from battery tech. Who owns that IP? Who are their competitors? What supply issues are in place?
How does the energy storage market compare to the EV market?
what happens when too many EV's are on the road and people reliant on fuel taxes? like, when is that tipping point?
who competes on tsla's patent portfolio? As in, if tsla has something important enough to patent, they're probably using the tech, who has similar tech and who builds it and how are they doing?
what suppliers do other EV and battey users use? How are those companies doing?
How about Tata motors? Chinese manufacturers?