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Intel Acquisition of Education Startup KNO Highlights the Value of Being Backed by Venture Capital

The great thing about a venture capital funding is that if your going to die or fail, you have at least more exits. Of course, we’re not claiming that high tech educational startup company KNO went tits up. There’s really no other way to read the news of its Intel acquisition than to basically say that they have got a nice little cushioned exit by being bought out by one of the best capitalized technology brands on the planet. This is precisely why many startups with otherwise compelling ideas should at least try to get some venture funding.

The venture funding might not necessarily mean that your company will go IPO or you would be following the footsteps of Facebook or Twitter in the stock market; however, at the very least, by being funded by venture companies you would go on the radar as a serious player in the technology industry. Once you are able to get branded as a venture backed enterprise then a lot of doors open for you— doors that you might not have available to you if you just want it alone. If you go for it alone, you basically have only two options: victory or death. Death of course also means stagnation and just being mediocre or being a mom and pop operation forever. Death is going tits up but victory of course means heavy profitability.

With venture funding, the other exit is the acquisition and this is precisely what happened with KNO. KNO had an initial stumble back in the early stages of its development. It was only formed in 2009 in Sta. Clara and its initial focus was to go into educational tablets. As you can already tell, this is quite a challenge because the hardware in of itself is a challenge. It quickly morphed into an educational software company focused specifically on digitized textbooks. Thanks to this move, it was probably able to refine its focus and its value proposition. In fact, it seems that it has worked. It has been acquired by Intel and KNO is now in the pipeline of Intel’s initiatives to expand its particular brand of technology to classrooms.
The great thing about a venture capital funding is that if your going to die or fail, you have at least more exits. Of course, we’re not claiming that high tech educational startup company KNO went tits up. There’s really no other way to read the news of its Intel acquisition than to basically say that they have got a nice little cushioned exit by being bought out by one of the best capitalized technology brands on the planet. This is precisely why many startups with otherwise compelling ideas should at least try to get some venture funding.

The venture funding might not necessarily mean that your company will go IPO or you would be following the footsteps of Facebook or Twitter in the stock market; however, at the very least, by being funded by venture companies you would go on the radar as a serious player in the technology industry. Once you are able to get branded as a venture backed enterprise then a lot of doors open for you— doors that you might not have available to you if you just want it alone. If you go for it alone, you basically have only two options: victory or death. Death of course also means stagnation and just being mediocre or being a mom and pop operation forever. Death is going tits up but victory of course means heavy profitability.

With venture funding, the other exit is the acquisition and this is precisely what happened with KNO. KNO had an initial stumble back in the early stages of its development. It was only formed in 2009 in Sta. Clara and its initial focus was to go into educational tablets. As you can already tell, this is quite a challenge because the hardware in of itself is a challenge. It quickly morphed into an educational software company focused specifically on digitized textbooks. Thanks to this move, it was probably able to refine its focus and its value proposition. In fact, it seems that it has worked. It has been acquired by Intel and KNO is now in the pipeline of Intel’s initiatives to expand its particular brand of technology to classrooms.

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