🚀 Why are cybersecurity companies so valuable, even with low revenues? In M&A, your company isn’t just a business, it’s a product. The key question: What can an acquirer do with you? Our Managing Partner, Shay M., breaks down how large tech firms approach cybersecurity deals, why implied value matters more than revenue, and how founders should shape their endgame from day one. 🎧 Don’t miss it! 🦆 Spotify: https://lnkd.in/dxE7b4t2 👓 YouTube: https://lnkd.in/d2tzTAGS 🍏 Apple: https://lnkd.in/d5fBAvU8 🇬🇧 Executive Summary: https://lnkd.in/d5TBWevn #CyberSecurity #MergersAndAcquisitions #VC #Startups #TechInvesting Seth Spergel | Almog G. | Tav Spector-Levi | Julie Arndorfer | Becky Riji | Andrew Smeaton
Change is a constant, but in M&A, the target (your company) is always going to be the 'product'. In this episode, we bring you the sultan, aka cyber investor Shay M., Managing Partner of Merlin Ventures. 🏹 Links to full episode: 1st comment. So: why the 🦆 do cybersecurity companies command seemingly illogical valuations at such low revenues? Shay says the answer lies in implied value - what an acquirer believes they will be able to do with you - and what your contribution margin is going to be. That means how you'll impact their sales, R&D efforts, & ability to go in and quickly dominate a space. Join Sophia Tupolev-Luz 🇺🇦🎗️ & Zeevi Michel, basking in the glow of Shay's experience as a founder, investor, and advisor on all sides of the table. But seriously now, his uncommon product perspective shows us how large tech players approach acquisitions, & how founders should think about their company's endgame from day one. 📈 Counterintuitive valuations in cybersecurity 🧠 Strategic motives behind acquisitions by large tech firms ➕ Understanding implied value and contribution margins 🧟♀️ AI influence on M&A's pace, valuation, and strategies 🏰 The importance of deep technological moats and expertise 🏛️ Impact of U.S. regulatory standards on market entry, risk, and M&A 🫶 Strategies for founders to align with potential acquirers from day one. Video and sound editing by: Yair Walden Location: Google for Startups Israel
