The worst thing that happened in these last couple of years is that damn versioning of what is a simply the broader continuum of the evolving web. Define web 2.0… just try it and you will see the futility.
What is coming to a close is the notion that all online services need to be free and paid for with advertising; there are too many startups that are dependent on a business model that has yet to prove itself for tech companies.
VCs will still fund these deals and Valley pundits will gleefully predict the next Twitter, but the fact remains that most startups simply die, some get acquired for nothing, and the rare few go on to great success. No different here, move on people… nothing to see.
I am waiting for venture investors to once again discover that there is money to be made in enterprise software.
Silicon Valley remains the hotbed of Web 2.0 activity, but the hipness of start-ups with goofy names is starting to cool in the face of economic reality.
Dow Jones VentureSource on Tuesday released numbers of venture capital activity in Web 2.0 companies and declared that the “investment boom may be peaking.”
[From Is venture capital’s love affair with Web 2.0 over? | Tech news blog – CNET News.com]
These are very cool. The only thing that would make them better is to hook up an online CAD program to a CNC machine to let site visitors build their own concept car components.
It would be easy to look at the plan Yahoo put out and suggest they are smoking crack. Seriously, if they could grow revenues to the degree that they are projecting in this economy, they are superstars in my book.
Of course if they did I’d be inclined to suggest that Jerry Yang is actually Eric Schmidt walking around in a Jerry Yang bodysuit. I just don’t see this company achieving those numbers AND adopting a super lean cost structure that would have to be part of the equation. A question that a lot of people have front and center is If they could put up those kind of numbers, then why haven’t they?
This plan is less about what Yahoo can really do and more about justifying a higher acquisition valuation.
Yahoo is projecting revenues after traffic acquisition costs (TAC)—i.e., what it shares with other Websites that run Yahoo ads—to grow from $5.1 billion in 2007 to $8.8 billion in 2010.
[From Yahoo’s Three-Year Plan: Grow Revenues 73 Percent By Focusing on Display Ads, Mobile, and Better Search]
It nicely sums up the irrationality of our current financial markets… of course Meebo doesn’t have billions in potential writedowns either.
Meebo raising round, valued up to $250 million. Bear Stearns sold for $236 million
[From Meebo raising round, valued up to $250 million. Bear Stearns sold for $236 million » VentureBeat]