Anil Dash writes:
This time, the VCs don’t come swarming in. Some folks are bootstrapping their services and some are taking angel funding (that means a rich friend of the company gives you money). So, instead of being pushed to do a huge IPO with a huge return, a lot of these people are more than happy to be acquired rather than shoot for a ridiculously huge IPO. I think part of the reason, for at least some of them, is that new regulations like Sarbanes-Oxley add some friction to the process of getting ready to go public. Nothing wrong with that, and it’s also good that some of the little services realize they’d be happier with a corporate home than trying to grow into a giant company on their own.
The math, though, is where it gets fun. I think Web 2.0 companies that have flipped/are flipping to big companies are ending up with almost the same end result for founders. It’s still a decent amount of money, there’s just a different path to get there.