This morning, as I was preparing to sit down and write to you, I was struck by some breaking news from startup-land.
Yesterday, Facebook made a stunning acquisition of a small tech startup based in the U.S. in a deal that’s reportedly worth up to $1 billion. That’s billion, with a ‘B!’
That startup is CTRL-labs – a ‘neural interface’ startup that’s spent the past four years working to develop a device that allows you to control your smartphone… with your mind.
Facebook plans to incorporate CTRL-labs into its augmented and virtual reality research branch, known as Facebook Reality Labs.
When a company as large and influential as Facebook makes a high-profile acquisition like this, you can bet that it turns heads from Silicon Valley to Wall Street.
As an angel investor, my ears perk up whenever I hear of a big tech buyout like this. And here’s why: other ‘supergiants’ – the Amazons, Googles, and other tech behemoths of the world – may start looking to catch up, so to speak.
That leaves a lot of opportunity for other startups in this space to get gobbled up for hundreds of millions of dollars… or more.
Think about it… CTRL-labs’ earliest investors are now sitting on more than a 90X return in just four years.
That could happen to anyone who invests in startups before they go public.
Facebook’s big acquisition signals an investor trend towards startups that aim to use the power of technology to change the way we interact with our world. That includes those studying virtual reality, augmented reality, artificial intelligence, blockchain tech, and much more.
In other words, this is the perfect time to invest in startups that pursue goals falling under this umbrella.
Right now, I have the names of three startups that are doing just that.
Like the tiny company that’s changing the way parents find the best childcare. Or the startup using artificial intelligence to revolutionize online shopping. Or the web platform that uses proprietary tech to make home décor smarter.
These are all early-stage companies that could be bought out by a tech giant at any time – and they’re still accepting investors.
Until next time,
17 responses to “Facebook Just Spent Up to $1 Billion to Buy One Small Startup… Here’s What We Can Learn from It”
September 24 2019