Making Money in Technology
After the Bubble, page 3
Executive Summary, continued
Another opportunity involves companies founded during the bubble years that are missing a crucial
ingredient: perhaps the right management, or the right business model, or capital to play out a
strategy. Add the missing ingredient, and, voila!
It’s possible that a company has created proprietary differentiated technology that is genuinely useful.
If so, dressing the technology up as a target for acquisition creates value for the stakeholders in the
technology (and to the ultimate acquirer).
Any of these strategies require careful employment of triage: figuring out what is worth saving and
what is not. Consolidation and streamlining plays will require some effort in taking down companies
(or parts of companies) that do not deserve to live.
The post-bubble era also provides an opportunity to buy technology cheaply. The trick here is
to get good value, get a good price, and own the intellectual property. It’s also important to get
some of the people who know the technology to come with it, and to establish integration
strategies in advance.
As they say, if you are given lemons, make lemonade. While 2001 presents challenges to the
entrepreneur and investor that were not present during the bubble, this environment also creates great
opportunities.
This barticle is intended for two audiences: entrepreneurs who are interested in making the most of the
post-bubble technology environment; and investors in public securities who would like to bring
their strategies and tactics in alignment with the changing times.
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