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If you would be building the Twitter, had no money and server costs were exploding, I guess it would be pretty easy to get some money somewhere by just showing
by jerguismi 16y ago
If you would be building the Twitter, had no money and server costs were exploding, I guess it would be pretty easy to get some money somewhere by just showing your visitor stats?
- mmaunder 16y agoThat's correct for an angel round in the valley right now provided the stats are very recent and they're trending upwards i.e. your growth is accelerating. The reason is because growth is what all valley angels look for. So if you have growth you create (as Cialdini would put it) social scarcity for your stock which creates a feeding frenzy. This is only in the valley. Seattle (where I'm based) is different. Many startups here focus on generating revenue from early on and there is less growth based demand. The valuations here are also lower. I think the number of investors is the reason. Not enough for a feeding frenzy and less growth-based exit stories to fuel the appetite.
- plaidhat 16y agoHow long do you think the stark regional disparities in funding are going to persist?
- mmaunder 16y agoWell it's only been 40 years. But financial armageddon is nigh so perhaps a decade from now China will be the new valley and the only thing the US will be good for is a place to base your servers since we're the center of the giant Internet star topology.