8 Ways to Build A Company That Google Will Acquire
Everyone is looking for the big exit.
Entrepreneurs, investors, company employees with stock options -- they all want the same thing.
Google (NASDAQ: GOOG) has provided some very big exits for a number of startups, including YouTube, Waze and Nest Labs.
The search engine giant could provide an enormous exit for your startup -- but only if it meets some key criteria.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this slideshow.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Create A “Smart” Product That’s Unusual Or Unique
Google loves smart products.
From smartphones and smart TV adapters like Google TV and Chromecast, Google is doing everything it can to bring superior smart tech to consumers.
Thus, any startup would be wise to come up with a way to help Google achieve this goal.
Nest Labs did just that. Its founders (and investors) made a cool $3.2 billion for their effort.
And all they had to do was build the world’s first smart thermostat.Image Source: Wikimedia Commons
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Start A New Industry
It’s no secret that Google wanted to acquire Groupon (NASDAQ: GOOG).
When the daily deals site launched in 2008, it was more or less the first of its kind. More importantly, consumers turned to it as if it was the first daily deals site ever made.
Unlike the competing sites that followed, Groupon followed through on its promise to deliver impressive discounts on restaurants and retailers.
Google was so impressed with Groupon’s potential that it offered to pay nearly $6 billion to acquire the firm. Groupon resisted the offer.
Other entrepreneurs may jump at the chance to sell their business for such a massive payday. And they could pull it off…so long as their startup introduces the world to an entirely new industry.Image Source: Wikimedia Commons
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Build A Service That Crushes The Competition
When YouTube launched several years ago, it wasn’t just another online video site. It quickly became the number-one destination for user-made videos.
The site opened the door for a world of homemade craziness that went well beyond America’s Funniest Videos. It also paved the way for uploads of clips from sporting events, TV shows and movies.
YouTube was, in essence, the site that every other video hub should have been.
YouTube quickly crushed its competitors for user-made videos and inspired Google to take a good look at the company.
In 2006, Google acquired YouTube and turned it into a massive empire that has brought a degree of fame to hundreds of aspiring actors, comedians, musicians and filmmakers.
Any startup that can pull off a similar feat is bound to attract Google’s attention.Image Source: Wikimedia Commons
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Amass A Massive Patent Collection
Google paid more than $12 billion to acquire Motorola.
Nearly half of that money went toward patents and developed technology.
Think about that for a second: Google paid $5.5 billion Motorola’s patents.
Patents are a necessary item for any tech company. Google can use them to protect itself against lawsuits, or use them to sue others who copy its creations.
Google could also one day re-sell the patents it doesn't need, possibly for a profit.
Thus, if you want Google to buy your business, you should start filing and acquiring as many patents as possible.Image Source: Wikimedia Commons
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Improve Google’s Existing Services
Google loves to tinker with its own creations.
The search engine giant will never stop working on Google Maps, for example. It is one of the company’s premiere services, used by nearly one billion people every single day.
If a startup can help Google improve this prized service, the firm will surely take notice.
In fact, that’s just what happened to Waze, a crowdsourced traffic app.
Will it improve the Google Maps user experience? That remains to be seen. But Google clearly thinks it will, as it paid somewhere around $1 billion to acquire the startup.Image Source: Wikimedia Commons
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Design The Next Big Social App
Like Groupon, Snapchat has reportedly turned down an offer to be acquired by Google.
As the popular social app of the moment, Snapchat allows users to send photos and videos with text and drawings added in.
The concept may sound silly, but Snapchat has several million users (including 4.6 million members who were recently hacked).
Google’s reported $4 billion buyout offer came in before the hack occurred. Before that, Facebook (NASDAQ: FB) reportedly tried to acquire Snapchat for $3 billion.
Thus, you don’t necessarily need to start a new industry to get Google’s attention -- just build a popular app instead.Image Source: Wikimedia Commons
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Introduce A Lifestyle Change
Google has already created a product that it hopes will change consumers’ lifestyle: Google Glass.
Now the firm has acquired a startup that may also change the way consumers behave: Nest Labs.
From an app-controlled thermostat and smoke detector to augmented reality glasses that enhance a user’s everyday experiences, Google is all about the future.
Those who build a startup that can help Google get there -- to whatever future the company may be seeking -- could be worth billions of dollars.Image Source: Wikimedia Commons
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Inspire New Laws
One of the side effects (unintended or not) of Google Glass is that might inspire a handful of new laws to restrict users from wearing the AR goggles while driving.
If those laws are passed, Google Glass could be legally restricted in movie theaters, casinos and other sensitive environments.
Popular night clubs could employ a “no Google Glass” policy to keep the techies out, while other, more modern clubs might encourage users to wear Google Glass.
And this is just the tip of the iceberg. When you have a camera and a computer strapped to your face, there is limitless potential for legal ramifications.
Imagine a pizza deliver guy who wears Google Glass at every delivery. Is he doing it for innocent reasons? Or is he doing it to surreptitiously spy on those who order a pizza?
In theory, the other laws could take care of this, but what’s to stop him from putting it on after he parks?
All of this comes back to Google. The company may not really want to purchase a startup that ignited a similar controversy. But if there was a company that could reduce the controversy -- now that might be appealing to the search engine giant.Image Source: Wikimedia Commons
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