The cheat code for large companies is simply to buy startups that have hit Escape Velocity, and integrate them into a preexisting network. This is exactly what eBay did with PayPal, which must be one of the best acquisitions in the technology industry. It turned out to be a great idea, as PayPal would eventually be worth more than its parent. But these days, acquisitions are hard and expensive. It’s easier said than done in a world where bad acquisitions are rampant, government antitrust concerns plague large networked products, and startups have become super expensive. Yet hitting the ceiling
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