• it_depends_man@lemmy.world
    link
    fedilink
    Deutsch
    arrow-up
    0
    ·
    2 months ago

    All the ones where the idea was to “just start something, grow grow grow, then figure out monetization later” is wild to me.

    E.g. reddit. It worked. CEO is rich, site is still online. Somehow they got investors probably, presumably.

    I get not having profit. I get not having income, if it’s in some prototype phase. But having no plan or idea whatsoever for how to monetize and still getting VC? Wild.

    • sunbeam60@lemmy.one
      link
      fedilink
      arrow-up
      0
      ·
      2 months ago

      Although to be fair these days that gig is over. Unless you have path towards profitability it’s very hard to unlock investment beyond seed.

    • TehBamski@lemmy.worldOP
      link
      fedilink
      arrow-up
      0
      ·
      2 months ago

      I get not having profit. I get not having income, if it’s in some prototype phase. But having no plan or idea whatsoever for how to monetize and still getting VC? Wild.

      It’s called “growth-first” or “growth-at-all-costs” strategy. I don’t recall what video I was watching when I learned it, but it’s a dying strategy for business now (IIRC). It had its rise in popularity in the late 2000s to about 2018. Think Netflix, WeWork, Uber, etc. These are huge businesses to prop up, so they (literally) bank on the idea that with a huge user base, they can sooner or later, make a profit to make it worth all of the risk.