are all us start-ups just r&d for google and yahoo?


	are all us start-ups just r&d for google and yahoo?

egoldstein

11-23-2005 9:50 PM

264 views

tags:

google, yahoo, venture capital, mark pincus

egoldstein says:

while these points seem pretty obvious, i think mark articulates well how companies and their founders can make more money selling for less if they never do big rounds of vernture capital.

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://www.clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/71dc08c4-c97e-4843-be9f-b5396ddd2c32/342F7254-B76F-46D9-AB93-E82A789A8AD3/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://markpincus.typepad.com/markpincus/2005/11/is_smaller_safe.html" href="http://markpincus.typepad.com/markpincus/2005/11/is_smaller_safe.html" style="font-size: 11px;">markpincus.typepad.com</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://markpincus.typepad.com/markpincus/2005/11/is_smaller_safe.html"><P>what's always been interesting is to realize that for a founder, the actual payout may be the same or more at much lower prices if they never raise big rounds of vc. this also implies that either they can create the same intended value without the big capital or that they do such a bad job deploying it that they dont achieve the intended results in revenue and cashflow. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://markpincus.typepad.com/markpincus/2005/11/is_smaller_safe.html"><P>to some degree this is simply enabling a beautiful mechanism for risk free, distributed r&amp;d for google and yahoo. they dont have to bet on the next flickr. they can just wait and see who gets there, especially when these companies (like flickr) never achieve significant revenue, even when they get big audiences. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://markpincus.typepad.com/markpincus/2005/11/is_smaller_safe.html"><P>i think this may cause more seasoned entrepreneurs to raise outside capital in smaller chunks, selling less of their companies. they can play the option. low valuations enable this. </P></blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/342F7254-B76F-46D9-AB93-E82A789A8AD3/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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