[csallen]

That brings up another good question (in addition to my earlier question about how much money is typically involved): Are these super early-stage acquisitions usually a result of the buyer spotting a diamond in the rough and reaching out with an offer? Or are they usually a matter of the early-stage startup just knowing the right people?

I suspect the latter, but it's purely a guess. This is one area of Startup Land about which very little has been written.

[stackthat]

I think spotting, for example lookout outlook plugin acquired by MS, which seems clearly to me MS needed such solution and lookout already solved it nicely. So why re-invent the wheel and spend more money when you got a safe choice.

[ryanpetrich]

I think Lookout was a talent acquisition. The current implementation of Outlook search is much worse than Lookout was.

[stackthat]

They didn't integrate into the Outlook though, they did integrate into Windows Desktop Search

[ryanpetrich]

Outlook search is powered by Windows Desktop Search I think.