3 ms·
Truth, but they did a good job convincing people of the present value of their current assets (users) and future revenue. In B2C, users are value, even if they
by gjmulhol 13y ago
Truth, but they did a good job convincing people of the present value of their current assets (users) and future revenue. In B2C, users are value, even if they are not revenue. It is still a challenge to monetize, but it is easier to think about monetizing users when you have them than when you don't.
Instagram is a bit of a special case, I think. Facebook was about to IPO and had no real mobile presence. The risk that they faced that they might not be able to capture mobile market share was in their S-1 and every 10-K and 10-Q since they went public. Mobile was a big deal, and Mark knew it. If you look at how it went down, it was largely that Mark just went in and bought them, because he knew he needed to. This is not a repeatable business model.
- philbarr 13y agoForgive my ignorance, I'm assuming S-1 means "series 1" funding round, which would be the first time you ever get funding? But what are 10-K and 10-Q?
- gjmulhol 13y agoThese are SEC forms. The S-1 is the form that a company files when they are ready to have an IPO. It is several thousand pages long and has everything from several years of financial statements to market analyses by third parties so investors know what they are buying when they invest in the company. 10-K and 10-Q are the annual and quarterly reports that public companies have to file by law with the SEC. These documents are the baseline of all investment activity. They are not enough for really hardcore investors, but they are a good subset of the material you need to make informed investment decisions. An aside: Typically equity rounds are referred to as Seed (<1 million), Series A, Series B...etc.