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Yeah, Gnip founders ignored this "very sound business advice" and raked in ~$130M. Startups are risky, startups that are growing in the ecosystem of one large
by vdaniuk 12y ago
Yeah, Gnip founders ignored this "very sound business advice" and raked in ~$130M.
Startups are risky, startups that are growing in the ecosystem of one large megacorp are even riskier but they are prime acquisition targets. You decrease success chance for higher yields. This is like business 101.
The advice "do not base your business model on another company" evaluates to "do not increase your risks" which would be an absolutely absurd advice.
If one qualifies the original statement with several conditions for different contexts, it may become a solid advice. As it stands this model of understanding business strategies is useless.
- jacquesm 12y agoSuper for gnip. But basing your business model on being allowed access to other companies' data fails far more frequently than that it succeeds, and it fails far more frequently than the already pretty bad chances that you have as a start-up to begin with. See the thread subject that you're commenting in for how Gnip's competitor fared.