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Facebook establishing a venture arm to invest in startups

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Re: Facebook establishing a venture arm to invest in startups

#11
post #5
post #3

Earlier quoted context omitted.

Would you take a penny from Softbank?

A penny from Softbank? Didn't you get the memo? Softbank requires you to take at least 1 billion.

Getting funding from Softbank is like foie gras: they'd literally stuff dollars down your throat.

Re: Facebook establishing a venture arm to invest in startups

#12

I wouldn't take a penny from Facebook. You know they will lock down any patent you create and steal your IP.

Disclosure: I worked for WhatsApp, including while owned by Facebook, and Facebook is assigned my twoish [1] patents.

Has Facebook done anything with their patents? I know they had an early spat with Yahoo and got access to a bunch to help with that, and have since put more effort into building a portfolio, but I don't recall seeing anything in the way of litigation. I know there's been issues with clauses in licenses, though.

[1] I've read both patents, I'm the only inventor, and I can't tell the difference between the two.

Re: Facebook establishing a venture arm to invest in startups

#13
Naturally. How else are they going to monetize the data they have on business traffic?

Just think twice about turning down a deal from them, no matter how bad it seems, because they probably know a lot more about your market and their alternatives to your services than you do. And the strategy in monopolistic situations like this is join us or suffer.

Surely this how Alphabet has grown so big.

Re: Facebook establishing a venture arm to invest in startups

#14
post #7
post #6

These kinds of articles about VCs and companies offering to invest big funds used to give me hope, but now that I've participated in bootstrapping a startup, I see these articles as bad news. They're going to fund my competition... Give them easy money and keep funding them until they get that big corporate exit and I'm out of business because my margins are too small and I can't afford bulk discount on Facebook adve…

This makes sure we continue having startups post about their incredible journey once they've established a good product

Haha, so true... and even the word "journey" sounds tacky in that context.

You can send free money straight to my bank account at regular intervals and I could write all about my incredible journey; an inspiring story of struggle against all odds.

...The odds of not being able to afford a yacht within 5 years.

Re: Facebook establishing a venture arm to invest in startups

#15
post #6

These kinds of articles about VCs and companies offering to invest big funds used to give me hope, but now that I've participated in bootstrapping a startup, I see these articles as bad news. They're going to fund my competition... Give them easy money and keep funding them until they get that big corporate exit and I'm out of business because my margins are too small and I can't afford bulk discount on Facebook adve…

In a world of easy VC money (granted that may be over), how viable is bootstrapping in a competitive market?

It’s not about viability anymore, if business takes a VC funding but if you honestly (and brutally honestly) think you can bootstrap then you have won the battle. VC funding is not a reversible step.

Re: Facebook establishing a venture arm to invest in startups

#16
post #6

These kinds of articles about VCs and companies offering to invest big funds used to give me hope, but now that I've participated in bootstrapping a startup, I see these articles as bad news. They're going to fund my competition... Give them easy money and keep funding them until they get that big corporate exit and I'm out of business because my margins are too small and I can't afford bulk discount on Facebook adve…

In a world of easy VC money (granted that may be over), how viable is bootstrapping in a competitive market?

It’s very viable. You just need to target a niche that’s too small for VCs to care for.

You wouldn’t be able to bootstrap Uber or AirBNB, because the markets they’re selling into are huge. However, there is an abundance of <10Bn-sized markets/industries out there that a VC wouldn’t think to invest in, where bootstrapped companies with a tech focus can grow and take over.

Re: Facebook establishing a venture arm to invest in startups

#17
post #6

These kinds of articles about VCs and companies offering to invest big funds used to give me hope, but now that I've participated in bootstrapping a startup, I see these articles as bad news. They're going to fund my competition... Give them easy money and keep funding them until they get that big corporate exit and I'm out of business because my margins are too small and I can't afford bulk discount on Facebook adve…

> I'm out of business because my margins are too small and I can't afford bulk discount

This is an economy of scale. It's caused by your competitors' capitalization, and it may be unsustainable since it's with respect to customer-acquisition versus production.

If your competitors' unit economics work, they're strategically leveraging scale using capital. Not the other way. (If they don't, go into cockroach mode or sell to them.)

Re: Facebook establishing a venture arm to invest in startups

#19
post #4

So will this use data harvested from their malware apps (Onavo)?

I wasn't aware that installing something by yourself that provides you with a promised benefit could be considered malware.

Your accusation even conflicts with the basic definition of malware:

> Malware is any software intentionally designed to cause damage to a computer, server, client, or computer network.

I know what you're getting at, but why chose such a loaded term that doesn't fit?

Re: Facebook establishing a venture arm to invest in startups

#20
post #4

So will this use data harvested from their malware apps (Onavo)?

I wasn't aware that installing something by yourself that provides you with a promised benefit could be considered malware. Your accusation even conflicts with the basic definition of malware: > Malware is any software intentionally designed to cause damage to a computer, server, client, or computer network. I know what you're getting at, but why chose such a loaded term that doesn't fit?

Because neckbeard hyperbole is the only way to talk about privacy on the internet
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