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Bingo. But the bone is cooked with the steak. Eventually, the VCs will want a return on the cash, and then you need to have customers that want to use snap-cha
by Balgair 10y ago
Bingo.
But the bone is cooked with the steak. Eventually, the VCs will want a return on the cash, and then you need to have customers that want to use snap-chat. There are 2 options then: Turn it into a paid service that you pay to use, or turn on the ads. I think we all know that most kids aren't going to pony up to use snapchat, so ads it is. They have to turn on the ads, and then, as the marketers are the customers, their voices become the most important. Eventually, all the VC cash is eaten away and snapchat is yet another photo-sharing service with a 'community' and some lite blogging/captioning attached.
- arkitaip 10y agoI'm calling it now: Snapchat adding discoverability features in a few years is the beginning of the end.
- guelo 10y agoThe IPO is the liquidity event for the VCs. After that it's the shareholders left holding the bag.
- Balgair 10y agoYou really think so? If that is the case, why the long delays in IPOs? You'd think that a 'pump-n-dump' scheme would be more profitable then. Provided that you cannot be implicated in this via many shell companies.
- jyrkesh 10y agoTheir CEO seems to think so. According to this, he's been racing to IPO all along: http://www.businessinsider.com/snapchat-ceo-evan-spiegel-we-need-to-ipo-2015-5 http://www.businessinsider.com/snapchat-ceo-evan-spiegel-we-...
- randycupertino 10y ago> But the bone is cooked with the steak. I've never heard that expression before! Of course googling it I get a million steak recipes. Can you explain what it means?
- deleted 10y ago[deleted]
- pizzacowboy 10y agoBasically that it isn't all "tender and delicious meat," i.e. the good stuff. You have to have the bone (a way to generate revenue) with the meat (the fun content for users) before you can cook and serve it (continue to support it). Hope that helps!