More Startups should Merge

There is a history of mediocre startups merging to create a powerful force that dominates their industry.

The benefits are great for everyone.

You have a team full of hyper motivated founders who prefer high equity over salary.

You are all nimble and waste less time copying and competing with eachother.

X and Paypal famously merged to beat Ebay before it would crush them.

Reddit and Infogami – although they may have done pretty well before that.

Auctomatic, the first startup founded by the Stripe brothers and YC Partner Harj Tagger was a merge of their company and his. Similar to Paypal, it was also vying for a piece of Ebay’s pie.

Some comments by Paul Graham and on Hacker News itself: