Thursday, March 22, 2018 11:04:40 PM
Not original author of write up below..original write up has been edited to shorten etc...
If there's one thing that vexes people, it's when hot, growing startups haven't started generating revenue.
It's somehow seen as a sign of failure if a company isn't making money on day one. Twitter was dogged by the revenue question for years. Today it's doing billions in sales, and it's publicly traded at a ~$38 billion valuation. Same with Facebook, which faced the revenue question. It's making plenty of money.
Despite the lesson of these companies, people have the same sorts of questions about companies like Snapchat, and Pinterest, which have been valued at billions of dollars despite the fact that they have zero in revenue.
Venture capitalist Marc Andreessen addressed this topic in an interview with the Wall Street Journal. As someone that invests in no-revenue companies, his answer is worth reading. Basically, he says, some companies know how to make money, they just haven't done it yet.
Here's Andreessen:
There are two categories of companies like this. You can guess which one I think Pinterest is in.
There are the ones where everybody thinks they don't know how they're going to make money but they actually know. There's this kind of Kabuki dance that sometimes these companies put on where we're just a bunch of kids and we're just farting around and I don't know how we're going to make money. It's an act. They do it because they can. They don't let anyone else realize they have it figured out because that would just draw more competition. Facebook always knew, LinkedIn always knew, and Twitter always knew.
They knew the nature of the valuable product they were going to be able to offer and they knew people were going to pay for it. They hadn't defined it down to the degree of being ready to ship it, or they didn't have a sales force yet, so there were things that they hadn't yet done. But they knew. They had a high level of confidence and over the passage of time we discovered they were correct.
OH OH I WILL LIKE TO ADD THAT GOOGLE WAS ONE OF THOSE COMPANIES AS WELL...
OH OH WAIT THERE IS MORE_ $15,000,000 FUNDING IMMINENT-WEEEEEEEEEEEE
$15,000,000 $ANDI-https://finance.yahoo.com/news/andiamo-corp-otcpk-andi-signs-121400952.html;_ylc=X1MDMTE5Nzc4NDE4NQRfZXgDMQRfeXJpZAM1aDZ2bmFkZGFmZ2R0BGcDZFhWcFpEeHVjejR6TkdZeE9ESXdZeTA0TW1OaExUTm1ZVGN0WWprNVlTMHhOakpqTXpabU1qWmxNVE4xZFdsa1BHNXpQa0ZPUkVrPQ0KBGxhbmcDZW4tVVMEb3JpZ19sYW5nA2VuBG9yaWdfcmVnaW9uA1VTBHBvcwMwBHJlZ2lvbgNVUwRzeW1ib2wDQU5ESQ--?.tsrc=applewf
OH MY MY MY MIND BLOWING TREE SHAKING IN THE WORKS- AAAM BUT WISE INVESTORS HAVE CAUGHT ON AND HOLDING THEIR SHARES WITH KONG FU GRIP
CONFIRMED today's filing-
.
READ ME-https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139469498
NO EXPERIENCED INVESTOR WILL GIVE AWAY HIS OR HERE SHARES WITH THE AMAZING UPDATES IMMINENT- IT WILL BE LIKE WATCHING A FOOTBALL GAME ALL THE WAY TO THE END AND WALKING AWAY RIGHT BEFORE A TOUCH DOWN...
ALERT MUST READ ME-https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139499230
***NEW TWEET! YouTube channel Utopya!
Looks like advertising is humming a few notes getting ready IMO!
“The Stewy”
-https://mobile.twitter.com/UtopyaTech/status/976499672087973889
YouTube channel here:
https://m.youtube.com/channel/UCQIRhHTJBjZ5Nnwi6bhQZww
NO EXPERIENCED INVESTOR WILL GIVE AWAY HIS OR HERE SHARES WITH THE AMAZING UPDATES IMMINENT- IT WILL BE LIKE WATCHING A FOOTBALL GAME ALL THE WAY TO THE END AND WALKING AWAY RIGHT BEFORE A TOUCH DOWN...
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