Web 2.0 - Another Bubble
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- justelite
It is Internet at the collapse edge?
- instrmntl0
The worrying tale of how my business made $515m more than Snapchat last year
The marketing and media agency I co-founded likely made at least $1bn more profit than Uber last year. We also made $515m more than Snapchat and $450m more than Twitter.
This isn’t because we did anything particularly remarkable. We just stuck to the basic business principle that it’s better to make money than lose it. Yet these tech “unicorns” are lauded as success stories despite the fact they’re yet to make a single penny in profit. In fact they’re a long way from it.
We find ourselves in a strange position where some of the most recognised companies in the world are built on foundations of sand, packed only with venture capital and investor funds. Subsequently, a number of founders are creating companies predicated on securing the next round of funding rather than creating a viable business model that the market will reward.