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How many business models can you think of for a startup?
I won’t go into all the details and specifics of the various business models that startups can go after but a few them include selling adverting, charging a subscription fee, licensing software, etc. There is one ... Continue reading »
I won’t go into all the details and specifics of the various business models that startups can go after but a few them include selling adverting, charging a subscription fee, licensing software, etc. There is one ... Continue reading »
10 months ago
The whole start a business and get acquired seems to becoming very fashionable at the moment. I still don't get why people are investing in companies with no idea of income. Like Twitter for example great service but how and where is the cash going to come from. Maybe I'm just slow and can't see the massive untapped cash flow for them. I wonder if they know, they must do to get VC's to part with cash. Otherwise it would be an interesting pitch to see.
Startup " we are going to have millions using our service everyday, we are going to change the way people live"
VC " oh thats great news"
Start up " yep it's going to become massive, we are going to be huge and famous, online everyone will talk about us"
VC "and people will pay for this service how much?"
Startup " ahhh pay? no no no it's free"
VC " ohh great count me in, where do I sign!"
WTF! What is the pitch these companies are making?
10 months ago
yep that's all very true. but from a vc's point of view if you already have millions of people using your platform then you can either think of a revenue model down the road (aka advertising) or can possibly get acquired. It is a bit "fashionable" to get acquired though, but unfortunately most of them just die off.
thanks for commenting