asterisk2a + groupon   11

Drowning in venture capital, mobile startups are waging unsustainable price wars | PandoDaily
upside of this up-cycle/up-business cycle? everyone with a little bit of chops and a MVP with little bit of traction can get capital. Downside? Everyone spends their capital. Would never happen in a down cycle. Down cycles are great, you've got more time to build a great team, product and brand. .... "[L]ook at ecommerce 2.0 companies like Fab and EcoMom who blew millions in capital acquiring customers at unsustainable rates, hoping for some magic lifetime customer value to justify the spending. (It didn’t.) “There’s a tension between growing fast enough and having a disastrous bottom line,” Jeff Clavier, Founder of SoftTech VC, says. Clavier was an early investor in Fab, among others playing this game. “If you don’t have growth you’re stuck, but if you have growth with economics not viable in the long term, [you’re making] a real bet that you’ll be funded nevertheless.” [...] companies aren’t developing a sustainable business model. [Freemium works better with Software Product.]
Start-Up  lesson  Start-Up  advice  Lean  Start-Up  VC  Venture  Capital  hunt  for  yield  growth  round  Uber  Lyft  Fab.com  sustainable  sustainability  customer  acquisition  customer  retention  2014  asset  bubble  bubble  Silicon  Valley  Palo  Alto  San  Francisco  business  model  business  plan  user  experience  user  expectations  Amazon  Zappos  free  freemium  SAAS  on-demand  mobile  services  Industry  mobile  first  Uber  for  X  Groupon  Berlin  Start-Up  Scene  Europe  Start-Up  Scene  London  Start-Up  Scene  me  too  price  war  commoditization  commodity  business  differentiation  differentiate  brand  brands  branding  indefensible  values  defensible  values  business  management  management  economics  frictionless  friction  rackspace  training  your  customer  growth  crutch  growth  hacker  traction  Value  Proposition  long-term  thinking  long-term  view 
july 2014 by asterisk2a
Commentary: Uber’s $18.2B Valuation Is a Head Scratcher - Digits - WSJ
That’s a worthy mission, but the wrinkle is that Uber is entering what is essentially a frictionless market (for both drivers and riders) in which its services are a commodity. The company’s phenomenal growth so far (we don’t know the actual numbers, but doubling in revenue every 6 months is what Kalanick claims) has been built on the back of low-hanging fruit — expansion into new cities, particularly where taxi availability is low — and levels of dissatisfaction among taxi drivers that may be temporal. (When I asked drivers who had a particular loyalty to Lyft why they liked the company, they said they felt it treated them better in general.) In both respects, Uber’s growth is reminiscent of Groupon, and we know what happened to them.
Uber  marketplace  efficiencies  marketplace  plurality  marketplace  marketplace  inefficiencies  sharing  economy  Groupon  barriers  to  entry  low-hanging  fruit  frictionless  friction  Lyft  urban  planning  urbanisation  transportation  public  transportation  Taxi 
june 2014 by asterisk2a
It’s Not A Bursting Bubble. It’s a Correction And It Will Take Awhile. | TechCrunch
the hunt for yield.

Late Stage ...
companies are still getting bid up “like insane.”
but .... “Like Icarus, they got too close to the sun.” (Zynga, Fb, Groupon)

still ... The best companies might even do better in a down market. (Linkedin, Monster energy drink company)

Early Stage investing ...
The impact on the early-stage market is the hardest to predict since these companies are valued more subjectively.

***

This is partly just natural market behavior. When things get super-hot, it’s smart to look elsewhere for less obvious opportunities.

Facebook IPO was just a good catalyst for reinforcing discussion about valuations.

Historical bubbles from the 17th century to 2008 have all sorts of bizarre characteristics. They tend to include masses of normal, unsophisticated investors and draw out unscrupulous and fraudulent actors.

Plenty of capital is still coming in ... The bigger firms are raising a billion dollars or more for their funds. mhhhhh ....
bubble  economic  history  investment-vehicle  investment  management  linkedin  IPO  Groupon  Fab.com  Twitter  seedfunding  venturecapital  Spotify  Zynga  Facebook  SiliconValley  2012  greatrecession  GFC  LTRO  monetary  policy  QE  ZIRP  unintended  consequences 
june 2012 by asterisk2a
A Russian Star Rises in Silicon Valley - BusinessWeek
Since paying $200 million for 2% of Facebook last May, Milner has increased that stake to nearly 10%—worth perhaps $2 billion—by purchasing shares from early employees, according to two people familiar with the social network's ownership. On Apr. 19, DST took the majority of a $135 million financing round for Groupon, a Chicago-based site offering coupons for restaurants and museums. In December, DST was the biggest investor in a group that plowed $180 million into Zynga. Milner "is a trusted adviser," says Zynga CEO Mark Pincus, who says the Russian visits every month "to give input, but it's a soft touch."
facebook  groupon  zynga  markpincus  markzuckerberg  DST  ICQ  Aol  marcandreessen  businessmodel  warrenbuffet  YuriMilner 
may 2010 by asterisk2a

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