Sunday, February 5, 2012
A VC's Perspective on Business Models
Based on last week's class discussion on business models, and Professor Roberts discussion of the peers who had to present their start-up in 5 minutes to get VC funding, this post, "Why Do VC's Invest in Companies with No Business Model?" argues there are only three internet revenue models. This really takes the business models presented in class and lumps them into three generic categories. This is an interesting dialogue about how a particular investor will determine future profitability based upon the correlation between one of the three business models and what a user will be "worth." Is having lots of users really the first step for any start-up business? If we agree with this, then getting "delighted users heavily engaged with your service" seems to be marketing priority number one!
Subscribe to:
Post Comments (Atom)
I think he answers the title question by saying that business models are very important. I don't disagree with the 3 generic categories he suggests, but I do think they are for advanced students of business models. They don't lead easily to an indepth understanding and they don't make a clear distinction between business models and their associated revenue models. These guys deal with these issues daily; newbies need a more detailed structure--I think!
ReplyDelete