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Why would you see what they need $40m from when you are on the outside looking in on a single product? Seriously.
by pclark 16y ago
Why would you see what they need $40m from when you are on the outside looking in on a single product? Seriously.
- Tyrannosaurs 16y agoFair point, just $40m is a lot of money for a start up software business. If they're looking at something with a bricks and mortar component that would be different but I'm generally with DHH on this one - businesses of this sort can grow quickly without the need for this sort of capital.
- dstein 16y agoThere's absolutely nothing in the Techcrunch article that would suggest this company is doing anything so technologically complex that it can't be easily duplicated. They even admitted they have no concrete plan (or proof) they can monetize.
- Tyrannosaurs 16y agoThe one thing in their favour (potentially) is network effects. If they can get everyone using their software before someone else comes along then the collaborative nature of it gives them a significant advantage in that there are more people you can collaborate with. But even that isn't a particularly strong lock in when the apps are free or cheap and available near instantly anywhere you have a data signal. Someone using a different app? Just go grab it - it's not like convincing all your friends to leave Facebook to go somewhere else.