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by peoplewindow
3219 days ago
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Same here. Asked by my mother, "why wasn't it you who created YouTube?". This was pre Google acquisition. I remember just staring at her for a moment, as my mother is a very sensible woman, and then just shaking my head and saying, "Mum, you realise that YouTube bleeds money don't you? It's not a real business. You can't pay for free video streaming with banner ads, that doesn't work as a business model". There's definitely a lack of understanding in older generations of how wealth creation in tech works, and it's definitely due to the flood of irresponsible VC money sloshing around the Valley. Good luck trying to get investment to do a YouTube anywhere but California: even the most basic questions like "if nobody buys you, will you make money" would rule you out right away. |
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Yep, I know this one all too well. When I tried to get a Silicon Valley esque startup funded in London, I found that a lot of accelerators and investors were simply more interested in B2B service businesses where they could be sure of immediate revenue.
The only reason so many large platforms and businesses got started over in the valley is because the investors there are willing to take chances on a company or idea with no real proven business model on the assumption that it'll find one when it becomes popular enough.
Investors in other places will be a hell of lot more skeptical.