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Agreed @ Reddit. Maybe a winning formula. 1. Find a startup in a new area that is over funded (digg) 2. Copy it, on the cheap. 3. Get bought for a "cheap
by points 16y ago
Agreed @ Reddit. Maybe a winning formula.
1. Find a startup in a new area that is over funded (digg)
2. Copy it, on the cheap.
3. Get bought for a "cheap" price compared with what the
over funded startup would request.
- tptacek 16y agoThis happens all the time in enterprise security.
- pkaler 16y agoIt wouldn't work in this case. Digg did a Round C in 2008 of $28.7m. That's when they were over funded. Reddit was founded in 2005. Digg was founded in 2004 and did a Round A at a reasonable $2.8m in late 2005. http://www.crunchbase.com/company/digg http://www.crunchbase.com/company/digg http://www.crunchbase.com/company/reddit http://www.crunchbase.com/company/reddit The only way your plan would work in this case is if you have a crystal ball in 2005. Basically, your competitor bets after the flop and you're planning on playing the hand while short stacked. And on the flip side you may end up being the Jaiku or Pownce to someone else's Twitter.
- ahi 16y agoBad example. Jaiku was bought by Google. Twitter keeps getting VC money, but hasn't gone liquid/profitable yet.
- dekz 16y ago2.5 grow Kind of important
- points 16y ago2.4 Decide to have absolutely no advertising and no monetization strategy whatsoever, leading to inevitable growth. ;)