If you have ever needed any validation as to why it’s a good idea to get venture funding, the latest cloud computing startup acquisition news should clear things up for you. The cloud based logistics and supply startup Shipwire has been bought out by Ingram Micro. Unless you have been hiding under a rock, Ingram Micro is one of the largest supply chain and logistics technology company in the electronics space. Ingram Micro has a presence in all aspects of the technology hardware vertical.
Apparently, Ingram Micro saw that Shipwire is making great strides in using a cloud based model to offer logistics and supply chain management services to eCommerce companies and online retailers. What makes Shipwire especially appealing is the fact that it also provided developer and shipping tools. In other words, it provides a diverse array of tools that can be flexibly tweaked to come up with more custom solutions or solutions that would fit specific business circumstances more tightly. Ingram Micro saw the big value and the big fit here so they bought it out.
While we still don’t know the terms of the deal, this deal does corroborate the position that we’ve had all along. While your startup might not necessarily need the money that venture capital firms bring to the table, your startup will probably need the legitimacy and credibility that come to you when you are backed with venture capital. This is, we suspect, what happened with Ingram Micro that made them extra appealing because they got $15M in venture capital and this puts them in the radar of many people in the industry. Once you have a venture capital backing you, many people will start paying attention to you and you can either look like a future IPO or a possible acquisition.