- Marc Andreessen | How the internet is making us poor – Quartz
- Anil Dash, “The Web We Lost” (via AllThingsD)
- There were only 472 companies they could find worth more than $100 million. I know, that sounds like a lot. But it’s really not. There are thousands of companies started every year, and the companies in this group were funded as early as 1998.
- What’s more: They took a huge amount of cash to get to this point. In aggregate $40 billion has gone into funding these 472 companies. The median amount was $75.8 million per company and the average was $84.7 million. Now a lot of these companies are worth well over $100 million. But on average that’s not exactly a stunning return on investment.
- Let’s look at that 20 percent in the consumer space. Out of some 80 companies, 34 of them were in the ecommerce space. Again, companies with a model for making money. Out of every company valued at north of $100 million since 1998, roughly 50 are building a business off of advertising. That’s astoundingly low, and kicks the grab-eyeballs-and-figure-it-out-later ethos right in the teeth.
“We need to create more affordable housing in the city, we need to create more housing generally. We’ve never created enough in the city, and we’re paying the price for that now with incredibly high prices.”
[AngelList founder Naval Ravikant] came back to a theme he’d touched on earlier in the interview, about how the world would be increasingly made up of very small startups interacting with each other through APIs. No big corporations.
To see how radical this idea is, look around the startup ecosystem. All of the most promising Web companies have done mega growth rounds at huge valuations. Facebook raised well over $1 billion in private equity before even going public and employs thousands. Even VCs and entrepreneurs who believe startups can change the world, believe you have to get big eventually. Sure you can be capital efficient at the beginning, but not at the end of a journey.
Ravikant argued that Instagram wasn’t a fluke — it’ll start to be the norm. He countered criticism that Instagram didn’t monetize by saying they only would have needed a handful of people to do it. And he went a step further, saying that Google and Facebook likely didn’t need 80 percent of the people working there. He argued Facebook could be built today with just a few hundred people.
This will be possible, he says, because future things will start to be outsourced that we couldn’t dream of being outsourced today. And whole armies of workers would wake up everyday, log onto whatever crazy hardware we’re using at the time, and get a daily assignment from a variety of companies — much like an Uber driver.
An article in Forbes has some astounding stats that give you a sense of the size and scope of Dropbox’s business.
- A billion files saved every 24 hours.
- It has 100 million users, twice as many as a year ago.
- Nearly 96 percent of its customers use Dropbox for free.
- About $500 million in revenues.
- Almost 250 employees. It started the year with 90 employees.
- A year ago when its revenues were $250 million, it was valued by private investors at over $4 billion.
Before Groupon filed to go public in June 2011, it lay claim to being the fastest-growing company ever. Its prospectus showed its revenue growing at a 1000-percent annual rate, in line with the growth of its gross billings, or the revenue Groupon collects before paying a share to merchants. But over the past five quarters, both figures have declined dramatically.
- Dean Rotchin, president and CEO, Blackjet | The 8 Missions That Should Dominate Obama’s Technology Agenda