Another TechStars company has been acquired. Well – part of it has been acquired. Today it was announced that eBay has acquired the RedLaser product from Occipital. The Occipital guys tell the story in their post titled Arrival at the Launchpad.
Occipital’s founders – Jeff and Vikas – are the epitome of bootstrap entrepreneurs. Every TechStars class seems to have one and Occipital wins the bootstrapper of TechStars Boulder 2008 award. At the end of the program they had a few chances to raise money but weren’t happy with the valuations so decided to hunker down and just bootstrap things. They reinvented themselves several times until they launched RedLaser which has been a runaway hit (over two million copies sold to date.) As RedLaser took off, they had another set of interesting investment offers but no longer have any need for outside capital.
While they were on their way to creating an interesting mobile ecommerce company, they wanted to work on a much bigger set of technical challenges than RedLaser in computer vision and augmented reality, their areas of passion and technical expertise. In their travels they had a few inquires for an acquisition of the company, but really only wanted to sell the RedLaser product, not the entire company. Fortunately, eBay was very interested in the RedLaser product and the match worked extremely well for both parties.
Given this sale, I expect Occipital is now a long way from ever raising outside capital. Jeff and Vikas are now extremely well funded, are scaling up a very interesting team, and going after a huge vision. Oh – and RedLaser is now free in the iPhone AppStore. Congrats to Occipital, Vikas and Jeff!