We all remember the last great bubble Wall Street. I'm not talking about the dip after 9/11. I'm talking about Dot com boom. Do you remember when risk capital companies were throwing millions of company, which expired .com? $ 3500 Ergonomic desk chairs, quickly growing inventory settings, and Whoopi Goldberg shilling a site that had their own specific currency and super-fast for delivery. Flooz.com died a painful death in the end, but not before it burned through the estimated risk capital-35-50 million dollars.
Sites such as Facebook and MySpace much praised the introduction of social media and user-generated news sites such as Reddit and Digg and venture capital (VC) became a little more difficult to obtain at least some Investors were still a bit reluctant. Reddit (a site where users submit and vote on articles, videos, and pictures) received only $ 12000 startup capital.It really popular site (60-70,000 visitors a day), they took a round in the fields of finance, who brought it receives less than EUR 100000 VC. after they received 85 k level visitors per day, Conde Nast publications was acquired by the undisclosed millions.
What Digg, Reddit, MySpace, Twitter and Facebook have problems? If you said "coming up consistently profitable revenue model ', you would be correct.
In Dot-Com the beam after no one has figured how to make a reasonable profit. In the case of micro blogging service Twitter is used in industry, the pre-euphemism "revenue" stage.What this means? No they are not making money yet. Revenue is coming, they just showed how is not. For as long as they are VC flat on usually is.
Web 2.0 and the difference is run Dot Com companies drive date of arrival. Kevin Rose, Digg is a weekly update on Diggnation webcast. Everybody's friend, MySpace is a ubiquitous "Tom". If you say "Zuckerberg" Silicon Valley, within a radius of 500 Miles, women and men cry was grown to miss when they move funding FaceBook quickly. People, such as the persons concerned. Rich wish to join with people very happy to help. These people are rockstars of the Web site. So they will receive the money. When the revenue streams of thin, these wildly Charismatic people on revenue model, which is usually only advertising placement.So investors hang there until advertising sticks, or in the case of MySpace, until it is sold in the company's larger entity which has been left to find out what tulospalvelujen. these sites FaceBook is the most successful. Successful, the value of their decreased from 15 billion dollars, mere $ 2 billion in recently. This is not based on the profit. This is based on the "predicted profit".
The biggest hero/Villain and this whole thing is Kevin Rose of Digg. He is to manage huge amounts of VC for Digg, along with cash his video site Revision3, Pownce and Twitter clone failed. Why he must be able to increase the money without significant return on investment. He is today a common vernacular. ".too big to fail. " Consider, as appropriate for your situation investor: tens of millions of multiple managers have been considered very high-profile person. He is a huge success story ylistetympi than. Future profits are tied to his future profits.Hereinafter referred to as "IP route belongs to him," declares "some other entity, the joint venture is at the heart of the sustainable value and give you a payout of the original investment, together with a substantial share of the profits of the sale.
Although this in itself creates a problem with VC investors, Digg, social aspects and the General Internet-adds wrinkle to withdraw funding: minute financing has been cancelled, not only to stop hemorrhaging money, millions of users, and to disenfranchise. It extends to all over the Internet in nanoseconds, and you are now at the criminals.All of a sudden, people start horse ends on your bed or start the worse, hacking accounts and divulging your personal information is known throughout the wasteland of cyberspace. it is not a PUBLIC RELATIONS nightmare that will take your life to the end of the PR-hell is. You will not be able to do well that.
So you are stuck until the next time you start be VC, one poorly prospects because their income plan. After this, the new startup, while leaving it to the boot that site visitors defect was "too big to fail" and enable it to do just that. Charismatic owner leaves the other to form the joint venture.You are left high and dry, the status of a person who would like to purchase from the site at a later date, the International Criminal Tribunal for the former to rebuild some of brightness at a reduced price.
There are situations in which the wise VC expenditure has reaped prizes, as well as investors and the buyer.Reddit's buyout was one case in which the price was justified, regardless of which shall be paid by the Conde Nast.They are extremely loyal user base and Conde Nast has been able to use drive traffic from other online resources, in particular, Wired Magazine, Vogue, Vanity Fair, GQ, and different versions of online media properties.The total amount of less than 100000 VC investment and sale million dollars, where the investors do certainly generous profit.Owners Pocket include rich payout, paid for the transfer of the Silicon Valley.There were no losers. how to be devoid of any distinctive character, which have driven hype for an indefinite period of time on social media and egos.
Some reads now, I am only is Digg about jerk. it is worth so much and investors are to be conducted in a haul, when it sells. My reply ... ummm ... does not exist., you can see, Digg has been brought to the capital, which is equivalent to at least EUR 60 M and estimatedly as much as $ 150 m is an internal are virtual circuit is $ 164 m. Digg valuation on the market to sell itself on Google is for $ 200 M. they shall be subject to the rules and Dot Com VC investors are losing their shirts. Slide as we can continue with the economic downturn and investors starting place at a reasonable market online property valuation and the deposit facility will remain unchanged.
Unless there is a revolution in online advertising, these companies will continue to lose money, and the fat of the albatross, which destroys fundraising landscape a bright side to the other entrepreneurs. using your current online business the standards applied we cannot safely pull flooz.com "loser" column.
No comments:
Post a Comment