How Snapchat Could March Startups Right Off the Cliff, Lemming-Style 143
Nerval's Lobster writes "Two investors are Tweeting that Instagram, had it stayed an independent company, could be worth between $5 billion and $15 billion today. That's led to talk of whether Snapchat was right to (reportedly) shoot down Facebook's bid of $3 billion for its business, considering its growth and sizable user base. Snapchat's founders evidently think they can score a better deal within the next few quarters. If they manage to sell their startup a year from now for twice as much, they'll be lauded as extraordinarily smart businessmen—perhaps smarter than the folks at Instagram who sold for a 'measly' $1 billion (and all this despite Snapchat making no revenue). But for other startups in the space, the Snapchat and Instragram stories won't do them much good. Propelled by dreams of ever-increasing millions (perhaps billions!) startup founders could end up turning down perfectly good acquisition offers in favor of continuing to bootstrap — and find their businesses eroding and imploding, as the market for their particular app or service either fades away or (more likely) ends up crowded out by competing software. The startup market is a shark-tank, and most of those who don't get out of the water as soon as possible are eaten, dreams of grandeur or no."
Le Pop! (Score:4, Interesting)
Remind which which date we have agreed on for that bubble to pop?
After I sold my companies, I walk ... (Score:1, Interesting)
... and never look back
Why would I buy back my old companies even if I can buy them back pennies on the dollar ?
When I sold my companies, I did not only sell the companies. I sold them what I had created, I sold them the years I have invested in those companies, the ideas that I've put in them, the niche market that they've created
And if the buyers fucked up the companies that they bought from me, they are already damaged goods - and unlike Michael Dell, I will not buy back the damaged goods, not even for pennies on the dollar
Same thing with the companies that I have helped created - be it with seed money, with mentoring, or with the connections that I have - when it came time for me to sell off the shares, that's it
I rather put my time in creating something new, or invest in startups that make sense