The Bigger Picture: Why disrupting M&A with blockchain tech is so important" Small and medium sized companies struggle to make good use of their unutilized IP, while the industry giants transform entire market sectors into their outsourced R&D department on an unprecedented acquisition binge. LEXIT employs blockchain technology to level the playing field and to allow everyone to use the powerful growth engine of Mergers & Acquisitions.
The idea behind LEXIT was born out of necessity. A few years ago, the LEXIT founders, back then working together as the EnvyMe team, were ready to bring a fully developed social networking application to the market.
With more than 2000 downloads in less than two months on Appstore, things appeared to go exactly as planned. Except this one pesky thing - EnvyMe ran out of money. In an attempt to self-fund further expansion, Amir, Majia, and Deniss decided to sell another company in their possession and reinvest the profits in EnvyMe’s marketing campaign.
As true children of the Internet, the LEXIT team was convinced that in this day and age selling a company shouldn’t be more complicated than selling a car, house, or any other kind of property. After intense market research however, our co-founders were surprised to learn that things couldn’t be further from the truth. Despite prevalent network technologies and online marketplaces for anything one’s heart desires, the Mergers and Acquisitions sector seems to lag decades behind.
The EnvyMe team’s liquidation efforts eventually bore fruit, but the overwhelming majority of small- and medium-sized startups fail to utilize their existent technology. Of course, this is often the case due to lack of quality. Very often though, this is simply a symptom of an inefficient market, failing to match valuable assets with buyers that otherwise would be happy to pay for them.
It's not like that for everyone.
On the other side of the spectrum however, we see a market dominated by giants of unbelievable proportions, such as Google, Facebook, Amazon and the like, growing even bigger in an untiring acquisition binge.
Google’s Alphabet, for example, acquires on average two companies per month. Its peers are not much different in this respect. So much so that the statement “M&A is the new R&D” has almost become the tech industry’s new battle cry.
This is very understandable. After all, this strategy makes a lot of sense. Economically speaking, it’s much more efficient to acquire knowledge from a seemingly limitless global market than to develop everything in-house. For the acquired companies this, of course, is also very reasonable. Developing new technology is a much more straightforward process if one doesn’t need to cope with the hustle of acquiring users and competing over market share.
Frankly, most entrepreneurs in the position to operate in this manner would probably do so. We would as well. The catch, however, is that M&A tends to be so costly and complicated that its benefits can be reaped only by players with pockets as deep as those of the Zuckerberg’s and Bezos’ of this world.
This dramatic offset between the tools that are available to the behemoths and the ones that are available to everyone else is highly troubling. As much as the tech giants M&A frenzy makes sense financially and strategically, we should not be comfortable with a situation in which the entire global market morphs into the private R&D department of a tiny oligopoly.
As it is the case in most situations of this kind, the remedy to this debacle will be found in creating alternatives and new modes of operation, based on cutting-edge technology.
This is why we founded LEXIT, and this is why we have designed it in a way that makes the powerful growth engine that is Mergers & Acquisitions accessible to all players on the market.
By allowing M&A processes to be concluded four times as fast, and at about a quarter of the traditional costs, an efficient market for IP and patents is established for the first time. Our goal is to allow companies to trade assets as conveniently as one would buy or sell a car or real estate while empowering entrepreneurs to discover the true value of their assets on a vibrant and highly liquid marketplace without having to bear overpriced prepayments.
With such a service readily available, we hope to change the power relations prevalent on today’s markets and bring the gospel of disintermediation the blockchain promises to an ever increasing share of the world economy.
We thank you for taking part in this journey and are glad to have you with us. If you want to learn more about LEXIT and about upcoming token distribution events, please subscribe to our newsletter, join us on telegram and follow us on twitter.
https://www.lexit.co/post/the-bigger-picture-why-disrupting-m-a-with-blockchain-tech-is-so-important
The LEXIT TeamLinkedIn: LEXIT
Facebook: Facebook.com/LEXITco
Twitter: @LEXITco
Reddit: reddit.com/r/LEXITofficial
Telegram:
https://t.me/LEXITcoBitcoinTalk:
https://bitcointalksearch.org/topic/ann-lexit-the-first-blockchain-powered-mergers-and-acquisitions-marketplace-2494585YouTube:
https://www.youtube.com/channel/UCCA0caYKUsy8hUCQ-Djy87wInstagram: lexit.co
lexit.co/resources/whitepaper
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Our goal is to enable companies to easily exchange assets as people would buy or sell cars or real estate while empowering entrepreneurs to discover the true value of their assets in a dynamic and liquid market without having to bear the expensive upfront costs.
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