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Investors aren't buying stock in Facebook or pretty much any software startup (save yours) because they expect to someday get paid by the company. To make money
by frederickcook 17y ago
Investors aren't buying stock in Facebook or pretty much any software startup (save yours) because they expect to someday get paid by the company. To make money off that kind of investment, they need liquidity. They all expect to see another financing round at a higher valuation, and with the size of Facebook these days, it'll probably have to be an IPO.
Regarding "Fashions change," I agree that that's the risky part, and from the amount of Farmville bullshit I see on my wall these days, it's a significant risk.
- apphacker 17y agoSounds like a pyramid scheme where earlier investors continue to dupe later investors. Eventually it's my 401k that loses out when all of this blows up when you run out of investors. I hate the stockmarket. If you want to make money, sell a service or make a widget.
- frederickcook 17y ago>>Sounds like a pyramid scheme where earlier investors continue to dupe later investors. Funny way to put it, but it kind of is, except that it isn't previous investors duping new investors, it's just an investor mentality. People are still buying into Facebook at a $15B valuation with no real precedent for a company like them being worth that much. It will be really interesting 5-10 years from now after they've IPO'd/been-acquired/fallen-out-of-favor where their revenue and market cap really settle.