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Would be possible to build a google/facebook/linked-in all the way to profit without significant cash up front? Any business relying on network effects is goin
by johnrob 18y ago
Would be possible to build a google/facebook/linked-in all the way to profit without significant cash up front?
Any business relying on network effects is going to need upfront cash. Since these types of business tend to become the fund-making "homeruns", I think VCs will stick around, doing what they are best at - chasing the big hit.
- aneesh 18y agoTicketStumbler, like any other marketplace, definitely relies on network effects. And, Google arguably doesn't rely heavily on network effects. Google's value to me (in the short run) is unaffected by how many other people use it.
- fallentimes 18y agoSort of. We rely on how many providers we have, but even that has its limits once you have all the big ones (which we do). TicketStumbler is just as useful for one person as it is for 1,000. You'd be right if you applied your statement to Stubhub or Ebay. We're more of an aggregator than a market place.
- ojbyrne 18y agoI'm pretty sure facebook was __started__ without significant upfront cash. Obviously they got to a certain point where they needed more, but the key thing is to have lots of momentum when you get there. See, for example, digg.com. ~ $15 k upfront, $50k angel funding 6 months in, VC around month 10.