155 karma · joined March 28, 2012
It sort of seems like a Quora-esque "you must sign up to see more" type of thing right now.
I'm assuming you can only vote if you sign up? If so, the target sign up market for LaunchSky are devs/entrepreneurs/etc which are usually not the target market of the apps that are using the service.
If a VC buys a 10% stake in company ABC for $1 million the trade looks like:
VC: -$1,000,000, +10% equity (worth $1,000,000)
Net = $0
ABC: +$1,000,000, -10% equity (worth $1,000,000)
Net = $0
Now let's say ABC doubles their valuation. Now the trade looks like:
VC: -$1,000,000, +10% equity (worth $2,000,000)
Net = +$1,000,000
ABC: +$1,000,000, -10% equity (worth $2,000,000)
Net = -$1,000,000
Obviously the $1,000,000 helped ABC double their valuation, which means that the transaction was not zero sum. Same could be said about all investments and to a lesser extent, options and futures. You can't ignore the context of the trades such as using put options to hedge a long position, for example.
If celebrities didn't take to Twitter I very much doubt they would have hundreds of millions of users now. You could argue the idea is what drove celebrities to use the service, but did it? If another service came out before or around the same time that celebrities used instead, would we say "Twitter is obviously a great idea that just didn't catch on?"
Edit: OK, YC adds much more hands on value to businesses, but the investment aspect is exactly the same as it would be if you bought shares over the market.
They inadvertently solved the need of microblogging. No need to maintain blogs; no need to write long posts. Just a simple, short way to keep people informed with what you are doing. But that's not what made them big either.
What made them big is celebrities took to it and used it as their main form of communication with their fans. That's why I made an account a few years back and I'd venture to say over half of the active users did the exact same. Twitter has since evolved past that, at least for me, but it was definitely the initial reason for the boom. Would they have been successful without that? Probably not.
So is Twitter a good idea? I don't know. I really don't know.
In a hypothetical scenario, would you rather own all of Apple or all of Google, Exxon Mobil, and Caterpillar?
My point is, I'm not sure P/E means as much with such a ridiculously high market cap.
http://askolo.com/ycalumni#4f851fc828e186c372000201
Good luck to everyone!
I'm not sure if this is common in other cities, but it really wouldn't surprise me one bit.