Start-Ups’ Exit Strategies in the Market for Technology

Abstract

Technology start-ups face tough odds in their journey to commercial success. A key consideration in entrepreneurial decision making is whether and when to find a collaboration partner, in the form of an acquirer. The same decision also applies to the other side of the table, as buyers have to decide whether and when to engage in technology acquisitions through collaborations with start-ups. This chapter looks at the literature that uncovered some of the factors around the key decision of the timing of a collaboration, with specific focus on technology start-ups that also possess patents. For start-ups possessing patents, the recent development of markets for technology offers more opportunities to engage in collaboration and bring their ideas to fruition. The chapter discusses directions for future research in the conclusion.