Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at firstname.lastname@example.orgUnity Software went public last year and one very interesting graphic in their prospectus is below. It shows their journey to becoming a public company (founded 2004) and one thing that stands out is the number of acquisitions they’ve made along the way. Unity has made no less than 4 important acquisitions since founding, which not only drives product, but as importantly bolts on revenue.
All that said, almost every large successful software company has executed M&A successfully, because organic growth has its limits. M&A is a valid way to bolt on revenue. Clearly, public markets appreciate it.