The Dot Com bubble of the 90’s burst with a big bang, many companies went down having spent huge amounts of investors money on projects that were in hindsight clearly unworkable and unsustainable.
Here we are almost 10 years later and while the projects are still just as unworkable and just as unsustainable but the rules of engagement have changed. Today’s dot com model is a different animal. Create a need in the user community, attract users, lose money, and wait for one of the big dogs to buy you out.
The prime example of this phenomena would have to be YouTube. With almost zero incoming revenue and huge outgoing payments that must have been really squeezing their bank account, they managed to hold on long enough to attract the attention of Google.
Another fine example would have to be Skype, great idea, great product, but no obvious way to generate a revenue stream, then along comes cash rich E-Bay, and problem is resolved.
To a somewhat lesser extent we could also include Writely, Picasso, and Blogger.
Actually if you start to dig around you find that there are many examples.
The Vulture Capital providers seem to be happy with this new world order. So my advice is, think up a money losing scheme and stick with it, oh, preferably a scheme that eats into the profits of Microsoft, E-Bay, Yahoo, or Google. With this approach you are pretty much set for life, you can turn a $100 waste of time into a multi million dollar windfall.
I am thinking of starting an online sales site selling snow blowers in San Diego, and I will have videos, free VOIP, and a word processor. All I need to find is that $10 million in Vulture capital.
So if you want to invest in this great scheme send me an email! hahahahaha
2 comments:
Sounds fairly accurate to me, 'create a service and user base, and get bought out', I think it is the way it has to be, maybe not though. We need some sort of aggregation of services into a cohesive and comprehensive web service. Companies like Google, Yahoo, and others have the resources to do this. W/O this aggregation, I will have to continue to run around like crazy and go in circles to find the web services I want. Enjoyed the post.
hmmm... you got me thinking now! Keep me informed of your idea's, as it's quite possible that there's one I will put my two-penneths worth on! Ha!Ha!Ha!Ha!
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