The F-word

There are “only two ways to make money in business: One is to bundle; the other is unbundle. “ — Jim Barksdale, CEO, Netscape

Fragmentation & Consolidation

Most startups unbundle existing products and markets. This is fragmentation. When startups undergo M&A it’s generally to bundle products and services. This is consolidation.

VCs make money on this cycle in a very specific way. We invest in fragmentation and exit into consolidation.

Markets go through cycles of fragmentation and consolidation. Whether a market…