Contxto – It’s not which fish is bigger, it’s which one has the bigger appetite. The latest international acquisition of Chile’s ArchDaily by Zurich-based Architonic is a case in point.
Yesterday (5), we had confirmation that the Swiss architecture database platform would be gobbling up the Santiago-based startup for an undisclosed amount. The purchaser claims to have over “one million international visitors every month” whereas the acquired boasts “13+ million monthly visits, 300+ clients, and offices in 5 countries.”
Obviously, there are many other factors to take into consideration, but nonetheless, the union of these two architectural powerhouses—both vying to be the “world’s number-one database” and “the world’s largest architecture platform”—will pack a punch.
The reign of new media
Estimates of the purchase have put the price tag on ArchDaily at US$11 million. No mean feat for an online media company specifically—and exclusively—focused on the vanguard of architectural projects and trends.
However, I’d argue that this specificity of these passion projects is exactly what got them to where they are.
I usually glaze over when I read founders roll out the word “passion”—the dullest “it” word in the entrepreneurial scene. But, if you’re not into what you do, chances are you probably won’t be brave enough to sell yourself on your own particularly niche idea. But these very ideas, when coupled with a viable business model, are worth gold.
If you’d listened to the naysayers not too long ago, you would have been swarmed by the materialist crowd that claimed that content producing companies were doomed since they didn’t produce physical products. Just think back to Facebook’s IPO (Initial Public Offering) back in 2012, and now remember how nobody remembers how much of a flop it was.
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The negative nellies are notably absent nowadays, having since turned their fire on one-size-fits-all, clickbait-fueled online platforms. (I shan’t be defending those here today.)
Indeed, CEO of Architonic, Stephan Bachmann, believes that its union with ArchDaily means that “our union as a single international organization means we can unite our expertise and experience, and make the most of them to […] grow even more.” In other words, they’re doubling down on what they do (and love) best.
Truth is, power lies in “new media” over traditional sort, not because it is techier, but rather because of its other more tangible offerings. It is when new media provides niche and targeted content that it succeeds.
It does so by getting enthusiastic converts to their content to put their money where their mouth is and share, subscribe, and invest.
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