October 1, 2013

Technology start-up firm raising $2.2 million for multiple acquisitions

As readers of this blog have seen, a majority of technology acquisitions happen when a larger company purchases a growing company with a unique product or service that differentiates them in the marketplace. This makes sense, as these enterprises have the funds to bring in a smaller organization with proven successes, so that both can rise to the next level.

However, there are other levels of mergers and acquisitions that take place in the corporate world. According to a recent article from StartupSmart, technology and start-up development group Kingston Development has launched a plan to raise $2.2 million, as part of a venture capital strategy to acquire a range of business to business organizations.

Founder and CEO Phillip Kingston was interviewed in the piece and said the idea is to partner with six companies for prices ranging from $50,000 to $350,000.

"We definitely want to keep the teams involved. This is not an exit for them, this would be growth," Kingston says. "We bring three things, capital, knowledge networks and distribution, so basically the companies can skip a whole bunch of steps in the business lifecycle, and get it from a couple of kids kicking around an idea with some revenue, to something that is a workable, scalable business."

He continues to say that he has instructed the team to consider service-based companies that have the potential for growth.

Technology acquisitions are happening with increasing frequency and it' s not just the major players like Google and Apple shelling out all the money.