4 ms·

Oh yeah and eventually Diaspora will overtake Facebook. Oh wait... If the VC model did not work it would have simply gone out of business. The reality of busin

Oh yeah and eventually Diaspora will overtake Facebook. Oh wait... If the VC model did not work it would have simply gone out of business. The reality of business is that doing things at larger scale requires capital. Sure you might be able to pull-off your lifestyle, but its going to be hard to motivate employees when the VC funded competitor gives them michelin star chefs, 50% higher salaries and a shot at windfall in few years. Sure twitter might be laying off few employees now. But before that it made its founders billionaires and several employees millionaires.

forgetsusername 10y ago
But before that it made its founders billionaires and several employees millionaires. Without ever earning a penny in profit for its shareholders. What a system!
bandrami 10y ago
If the VC model did not work it would have simply gone out of business. It has, on a macro scale, three times now. On a micro scale, it does every day, but there is always some new money who is sure they can get it right this time.
cabinguy 10y ago
The VC model works best for the VCs. Sure, a few entrepreneurs win too, but the model expects way more failures than homeruns. And that's if you get to the place where you're deemed worthy of their capital. I'm part of that successful bootstrapped crowd (way more than $20k/mo profit). I'm not a billionaire but my lifestyle is pretty amazing. Bootstrapping is a legitimate way to grow a real business.