Shervin Pishevar likens small acquisitions to silent assassinations

Shervin Pishevar has become one of the most revered figures in tech finance. As the founder and CEO of Investment company, Shervin Pishevar has been involved in the creation of some of the biggest names in the world of technology. Projects on which he has played an integral role include the formation of names like Uber, Airbnb and Virgin Hyperloop. He has also been a highly successful entrepreneur on his own, founding companies like WebOS, Ionside and Social Gaming Network.

Shervin Pishevar says entrepreneurs don’t know just how much their creations are worth

One of the most serious problems that Shervin Pishevar continues to see unfolding within the world of U.S. technology is the overbearing and often-stifling role that the Big Five tech monopolies are playing. He says that one of the most deep-rooted structural problems within the world of technology is the fact that so many tech firms are being founded by relatively inexperienced and young entrepreneurs.

When someone who had just graduated from college a few years before and who may have not even had a real job in their lives is suddenly offered $10 or $20 million to be bought out of the company they just founded a couple years ago, that life-changing amount of money looks like a fortune. And that is because, to these entrepreneurs, it often is.

But what these entrepreneurs often don’t realize is that if they were to continue to develop those businesses, in many cases, the true long-term value of their firms may be truly stratospheric. One of the problems that Shervin Pishevar identifies with these buyouts is that the entrepreneurs who are receiving the checks are often fully satisfied with these deals. Therefore, there is no motivated antagonist to these early buyouts of high-tech firms. Everyone involved walks away more than content.

However, these buyouts often allow the Big Five to purchase genuinely disruptive technology and then shelve it, avoiding having to compete with potentially serious opponents in the marketplace. It is, as Shervin Pishevar points out, like killing an infant in the crib. The tech monopolies never really have to compete.

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