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Social networks must be the ultimate winner-takes-all product. They're probably great investments for VCs. They're high return, and they bleed money until the m
by noelwelsh 13y ago
Social networks must be the ultimate winner-takes-all product. They're probably great investments for VCs. They're high return, and they bleed money until the magic inflection point so you can probably get good terms. I think they're crappy products for founders, because the risk is so high and you don't have the same opportunity for diversification that an investor does.
Speaking as a founder, I feel it comes down your own risk/reward preference. I'd rather have a good chance of a $50M exit than a miniscule chance of $1B.
- dylangs1030 13y agoTrue, but for the entrepreneurs and founders that want to take over the world (so to speak), they're perfect ambitions. While not all founders tend towards that goal, the ones that are most "high risk, high reward" will naturally gravitate to that. No one founds a successful social network and doesn't end up wealthy. Tumblr, Facebook, Instagram, etc. all leave their founders with significant exits.