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That sentence is to get the entrepreneur thinking about a company they don't much like, but the company is successful at getting funding. Every entrepreneur sho
by JacobH 13y ago
That sentence is to get the entrepreneur thinking about a company they don't much like, but the company is successful at getting funding. Every entrepreneur should have their own company to fill that blank.
At the end I tell the reader about Snapchat being my disliked company. And although it's based on no real computer science, investors are funding Snapchat because they are competition to where they want to be.
Now lets take a step back. If a company is in a market of it's own, the value of the market is the value of the only company in it. 100% of $0 profited is a $0 valuation. But lets make facebook our competition. 100mil SC users versus ~1 billion facebook users is ~10%. Now take 10% of facebook's value. That's the only way to give value to a 3 year old company that doesn't make money.
- argonaut 13y agoWhy should every entrepreneur have a company to fill that blank? I don't think they should. That promotes an unhealthy, overly cynical view of the landscape. Cynicism does not a good entrepreneur make. There are a million ways to justify why Snapchat is a dumb company, and a million ways to justify why Snapchat is a great company. One of the great things about markets is that there is an easy way to tell who is right and wrong, given time. Some investors have invested a lot of money into Snapchat. The fact is that many of those investors have a great track record of picking successful companies and actually betting on them (better than you or I). Time will tell who is foolish here.