VC bucks creating discounts is about the only form of wealth redistribution we [the U.S.] can count on these days.
The Entire Economy Is MoviePass Now
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Re: The Entire Economy Is MoviePass Now
#12I am curious if this will end with a "bubble-burst" or a slow burn like twitter has experienced. Surely the money has to dry up sometime? It is too bad that none of these companies create any kind of net good for society like a startup that pays you over minimum wage to clean up a park or sort recycling.
> Surely the money has to dry up sometime?
Yup, this fall. By the close of 2018 all the world's central banks will be in quantitative tightening after having spent the past 10 years perpetuating an unprecedented level of quantitative easing.
Re: The Entire Economy Is MoviePass Now
#13thank goodness so many people are smarter than those darn goofy VCs. Businesses competing for customers! It's flagrant hubris. Those Silicon Valley guys who became billionaires doing this still have no idea what they are doing. I am pretty sure they have a big comeuppance due to them.
The number of internet only SV companies that regularly pull in 100+ million in actual profit each year and are thus stable billion dollar companies is surprisingly small. The companies that shoot past that into 50+ billion dollar territory are a large part of why SV has so many billionaires.
The number of people who became billionaires through venture capital– as opposed to becoming a VC after you were already independently wealthy through family or another business– is also quite small.
Re: The Entire Economy Is MoviePass Now
#14> Enjoy It While You Can I love the conclusion of this article. As someone who has participated in the online "deals" community for 10+ years, I have definitely benefitted from many of the opportunities. However, I do spend a considerable amount of time wondering what will happen when this house of cards comes falling down. But you know, I think that for every one person like me taking advantage of these "arbitrage"…
Yup. I know things are too good to last, but (for the time being) I am happy to be on the 'winning' side of bad investments.
I'm curious what is attracting investors to these start ups in the first place, is it really just the idea that 'this could be the next amazon'? As the article pointed out - Amazon dumped a ton of its money back into the company to expand services. Most of these burn rate services are happy with just getting people signed up and then stagnating.
Re: The Entire Economy Is MoviePass Now
#15Reminds me of VC Fund My Life . It's an index of discounts offered by startups, which you more or less know they're taking a loss on. Clever name. http://www.vcfml.com/
That site seems like it’s all fake promotion - e.g. coinbase is on their and last I looked coinbase’s fees were monstrously high compared to Gemini and other exchanges. It’s definitley not saving you anything choosing them.
$10 on $100 is far more than their fee. If you signed up, bought on Coinbase and sold on GDAX at the same price you'd make $8.51. Small but indeed free money if you know what you're doing.
Re: The Entire Economy Is MoviePass Now
#16> The king of money-losers, of course, is Amazon, which went years without turning a profit. Instead, it plowed billions of dollars back into its business
The key difference with Amazon is that Amazon could choose to be profitable at any time- just raise prices ever so slightly, reducing growth in customer demand, and the stop building out its enormous logistics empire and new businesses. Amazon could have had profits for a very long time, but Bezos understands that re-investing money in the company grows the value quickly. Plus, you only pay taxes on profits.
MoviePass can't really do that. They don't have potential profits that they can just stop re-investing. They aren't spending money on investments- they just don't have income high enough to cover the costs of their product. And lots of other start-ups have the same problem right now.
Re: The Entire Economy Is MoviePass Now
#17I am curious if this will end with a "bubble-burst" or a slow burn like twitter has experienced. Surely the money has to dry up sometime? It is too bad that none of these companies create any kind of net good for society like a startup that pays you over minimum wage to clean up a park or sort recycling.
There will eventually be a pets.com of the tech bubble. Something like Tesla or Uber or Blue Apron going belly up.
Blue Apron going belly up won't even create ripples. They are not in the same league as the other 2 companies you mentioned. Just saying..
Re: The Entire Economy Is MoviePass Now
#18I am curious if this will end with a "bubble-burst" or a slow burn like twitter has experienced. Surely the money has to dry up sometime? It is too bad that none of these companies create any kind of net good for society like a startup that pays you over minimum wage to clean up a park or sort recycling.
There will eventually be a pets.com of the tech bubble. Something like Tesla or Uber or Blue Apron going belly up.
Pets.com is probably the wrong example from the 90s. Webvan.com is a bit better: hundreds of millions spent on actual warehouses, trucks and more.
Pets.com clearly overspent on advertising, but I don't think they risked too many assets on the line. So when Pets.com eventually died, it wasn't a big deal. Its funny, because they had superbowl commercials and huge outreach. But nothing like like Webvan's huge warehouses or fleets of trucks.
Re: The Entire Economy Is MoviePass Now
#19Earlier quoted context omitted.
There will eventually be a pets.com of the tech bubble. Something like Tesla or Uber or Blue Apron going belly up.
Blue Apron going belly up won't even create ripples. They are not in the same league as the other 2 companies you mentioned. Just saying..
Pets.com only had 320 employees when its IPO flopped.
Re: The Entire Economy Is MoviePass Now
#20Reminds me of VC Fund My Life . It's an index of discounts offered by startups, which you more or less know they're taking a loss on. Clever name. http://www.vcfml.com/
That site seems like it’s all fake promotion - e.g. coinbase is on their and last I looked coinbase’s fees were monstrously high compared to Gemini and other exchanges. It’s definitley not saving you anything choosing them.
Agreed, and Gemini is not well known enough... it's basically no fees for most users moving between USD and BTC, and it's legit, based in NYC and follows all of the NY state regulations on crypto.