Abstract: there is a profit model of B2B companies only 20 million to $50 million in revenue to survive, the company’s daily expenses will not be too high, customer loyalty is also quite good. Those overvalued B2C startups, "unearned" users may seem huge, but basically no retreat. If the bubble burst, B2B companies can continue to develop.
[Tino] / Chen Qianmin / translation editor of Silicon Valley will "bubble" foresight, ready before rupture. But this time, the bubble is only in the B2C field. For the vast majority of B2B startups, they usually plan how to make money before starting a business, that is clear profit model. However, the main social elements of the "unicorn", they need to obtain high-speed user growth, on the other hand has been plagued by high burn rate. Of course, ultimately they have a choice of being acquired, so you can sleep without any anxiety seems to be the.
however, this model is not sustainable, but also to expand the technology bubble. I hope the VCs will be aware of the fact that in those areas of the community before the start-up companies to finance, let them build a profit model. In contrast, B2B technology ecosystem in the future will become more and more flourishing. When B2B and B2C meet, I think investors can make the right choices in the.
a dying logic
entrepreneurs always believe that if they can accumulate enough free users, their company will eventually be able to acquire. This logic is now increasingly untenable.
to achieve advertising revenue, technology companies to provide services must meet three conditions:
can attract users
can collect a large amount of user’s personal information
can provide advertising media
therefore, those technology companies often choose on the platform "bet", think change will definitely bring qualitative change: 50 billion users are also unable to bring advertisers monthly 500 separate visits to
, for example, Tumblr has a huge user base, in YAHOO seems to be able to attract eyeballs can bring advertising revenue, so hit $1 billion 100 million acquisition of Tumblr. However, this acquisition is successful or not, it is not possible to make a judgment, although YAHOO CEO Marissa Mayer will often use the company’s number of users to continue to grow, but the return on investment is not. Even if YAHOO had to spend $900 million acquisition of Foursquare, the final result may not be different, because the latter also did not clear financial profit model.
for the vast majority of social content startups, the profit model is often "afterwards"