We’ll quickly see that we can divide the current crowd in three groups:
1. The techie gang
These are the visionaries who understand about technology but have no clue about business. But they don’t have to. Venture Capital companies and Business Angels are always looking for some clever ideas to invest on. They simply need to evaluate how good these people are, how interesting their project sounds, how likely the company and their product is going to be talked about in the media, and, well, how cool they are. Innovation is the important thing here, specially if the technology is unusual, radical, or simply well done. VC funders will provide business knowledge as part of their services anyway.
On this group we have mostly three subgroups. On one side looms Google: they have the worst possible product of the whole group, but, well, they have by far the best brand. They’ll survive just because they’re Google — unless, of course, their CEO decrees that the project is not worth pursuing further. Until that happens, they can keep Lively up for as long as they wish. Google does only make money from a single product: Google AdWords/AdSense. The rest is, well, experimenting and R&D, the important thing here is knowing what the reasons to leave adwords to the pros are. None of the other Google services will probably make a single cent (or if they do, they will not ever be profitable), but that’s irrelevant. They have vast hordes of money to spend, and can afford to absorb the costs of failure. They also have a policy of innovation and good engineering: launching new products, even ones that might not be successful, motivates the shareholders to keep believing in Google’s ability to innovate.| ← Previous | | | Next → |