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>> "maybe I've fallen so in love with my new home in San Francisco" I think perhaps you're in the epicenter of a bubble now (SF). Unless it's a $20million inve
by axod 17y ago
>> "maybe I've fallen so in love with my new home in San Francisco"
I think perhaps you're in the epicenter of a bubble now (SF). Unless it's a $20million investment for a twitter based replyBot, it looks lame.
Meanwhile, plenty of people in the UK (And everywhere else) are building profitable online businesses quietly, just as they have done for years.
One thing that has always seemed weird to me is how companies who announce they've "won $Xm in funding" seem to be 'rated' higher than companies that are making modest profits and growing fast. IMHO "winning" investment just means you convinced someone to give you some money. Whereas a company that's profitable and growing fast, you've proven your business model - far more impressive than convincing a handful of people to give you some cash.
Much as I hate a lot of what 37signals have to say, when URL shorteners, twitter crawlers, etc getting millions in funding, you have to ask yourself if that's a good thing, impresive, or just the sign of a large bubble that will burst pretty soon. Building a business on top of another unproven business - is anyone doing any sort of risk assessment here? Or even thinking about business models? Or are they just hyping up the hype to the next level and taking the easy investment money. There's a lot to be said for just being a quietly profitable startup without all the hype+glitz+bs.
Just my 2p.
- pxlpshr 17y agoIMO, so many entrepreneurs have made it that they are paying it forward and reinvesting in the ecosystem. So while many of these companies may fail — like many do regardless of geographic location, they'll produce talent that has experience and a better understanding in the next cycle. I agree that there is hype, thats the nature of the beast with popularity and seemingly unavoidable... but it contributes to maintaining the ecosystem in SF. Also, I've concluded most investors prefer investing in strong teams over simply a new idea. Many of the 2.0 startups are stacked with guys from 1.0 era.
- axod 17y agoThe measurement is all off though. Who is doing well in 2.0? Twitter??? Seriously? IMHO startups are being judged mainly on 'hype' and how much investment they get rather than usual sane business metrics.
- icey 17y agoI agree 100% - I have a hard time remembering when the metric for success was profitability, at least as far as internet startups are concerned. Google comes to mind, but only because such a huge deal was made of their IPO. I think prior to that everyone considered them successful based on their popularity alone (figuring that Google was barely breaking even before their financials were released).