Before I begin ranting about this, I would like to give an honorary mention to all the pioneering startup founders who turned our world into the convenient tech era we live in today:
- Apple – Gave us personal computers.
- Microsoft – Ripped off Apple.
- IBM – Pioneer of computers.
- Intel – Gave us fast computers.
- Paypal – Will eradicate Bank of America.
- Skype – Will eradicate Verizon.
- Google – Gave us abundant information.
- Amazon – Turned us all into a bunch of lazy !@%#$.
- Facebook – Disconnected our world, and brought communism back.
- Whatsapp – Pretty much the same as Facebook Messenger, only people don’t respond to your messages.
So how do most startups fall into the pyramid? From it’s inception, Snapchat relied on a consistent flow of VC money to survive. Survive what? To survive long enough for it’s user-base to amass 10+ million. In the meantime, they continue to collect VC money at higher values- the VCs are not stupid, they are aware of how dumb these startups are, but they hope to score a unicorn IPO, or an exit, walk away with massive returns, and hope that the bubble will burst on someone else. Speaking of Snapchat, that’s precisely what happened; they consistently took VC money on higher and higher values, they launched an IPO, that skinny founder and the speculating VCs got shit rich, and since then the public shareholders lost like over 90% of their investment – if they were greedy enough to hoard their stake.