A startup according to Blank is a group if people in search of a business model. I am making the claim that SnapChat is not searching for a business model, but rather an exit -- by being a juicy component to someone else's model.
And you base that on the fact that they just declined $3B from FB, and presumably $4B from Google.
Sure, they built all that service to decline both offers and close down the doors. Sure, Snapchats owners and VC are mentally ill and they declined buyouts because they are not searching for a business model themselves.
/sarcasm.
Also, they have the scale to start testing monetization, but they are not, because they'd rather increase the value of their exit to an acquirer by growing users.
They want a larger exit.
> People build companies to flip all the time.
This doesnt seem to apply to SnapChat as they just decline huge exit offer. I mean what bigger proof you need than $3B ?
> They could just be young, foolish, and arrogant
you mean VCs with hundreds of years of experience (combined) that do VCiing for living? Don't think so.
@wensing
> They want a larger exit.
Most likely not. Did Facebook look for "a larger exit" ?
Note that they don't have to be mentally ill to turn down a big offer. They could just be young, foolish, and arrogant. College-age entrepreneurs are known for many things, but humility and wisdom are not items typically mentioned.