I spoke today at the Web2.0 expo on the topic of how this generation of internet companies can make money under both media and e-commerce models (Show me the money). This is an expansion of previous posts I have written on this topic.
The short form of my presentation is as follows:
1. Its easier than ever to start a consumer internet company
> 1.1. Not too hard to get to cash flow breakeven
2. For long term value creation, plan A can’t be “get bought by Google”
3. Need to have a roadmap to be an independent public company
> 3.1 Requires real scale
> 3.2 Revenue sometimes lags costs when you are growing
> 3.3 May need venture capital to bridge the gap
I go into more detail on this and lay out the math as to how big you need to be to both breakeven and to be a public company under both business models.
For those who are interested, slides are available here: