Anyone want to buy a Canadian start-up? You better act fast because they’re selling like hotcakes!
The latest deal is CNN’s purchase of Vancouver-based Zite, which offers a popular tablet application to read content.
Zite was in the midst of raising venture capital that apparently valued the eight-person company at $200-million so it will be interesting to see if CNN had to cough up some serious coin. (Note: AllThingsD reports CNN paid $20-million to $25-million.)
Zite’s acquisition comes on the heels of a flurry of other deals this year. The list includes:
- Five Mobile (Zynga)
- BackType (Twitter)
- PostRank (Google)
- Tungle (RIM)
- PushLife (Google)
- Radian6 (Salesforce.com)
- Tiny Hippos (RIM)
While it’s a little disappointing to see fast-growing start-ups get snapped up, the upside is that success will hopefully provide entrepreneurs and investors with a stronger appetite to start and support more start-ups. Who knows, maybe Canada’s cautious, reluctant, recalcitrant venture capitalists will be emboldened enough to get in the game rather than watching from the sidelines.
As I have mentioned on this blog and my Globe & Mail column, I believe this is the most exciting time for Canadian start-ups in the 15 years that I have been involved as a reporter, start-up founder/employee and consultant. By much-needed emergence of buyers for Canadian start-ups just makes the landscape even that much more exciting.
More: TechVibes has a running list of Canadian start-ups that have been acquired.
I spend a lot of time working with start-ups, particularly helping them with content, communications and, increasingly, their Web site usability needs. It involves a lot of focus on making sure they are telling the right stories to the right audiences, their messaging is clearly articulated and users quick “get” what they do, and their Web sites are accessible and easy to navigate.
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