Comments on: Why FriendFeed Deserves a Billion Dollar Valuation http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/ a blog about technology Thu, 20 Nov 2008 11:43:47 +0000 http://wordpress.com/ hourly 1 By: Y Combinator Challenge #16 - « A Startup A Day http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-36 Y Combinator Challenge #16 - « A Startup A Day Mon, 11 Aug 2008 18:25:32 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-36 [...] a question.  That’s something that’s going to take a little more time - I’ve previously posted my thoughts about one company that could take on that challenge. My personal opinion is that design is a good way to pull some share from Google on the discovery [...] [...] a question.  That’s something that’s going to take a little more time – I’ve previously posted my thoughts about one company that could take on that challenge. My personal opinion is that design is a good way to pull some share from Google on the discovery [...]

]]> By: amolpatil2k http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-22 amolpatil2k Wed, 11 Jun 2008 03:44:23 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-22 typos typos I wouldn't blame anyone, though. It is just that no one among us has been smart enough to (invent) large scale decision making. When we open something, it is a substitute for large scale decision making because the initiative (gets) distributed. typos typos

I wouldn’t blame anyone, though. It is just that no one among us has been smart enough to (invent) large scale decision making.

When we open something, it is a substitute for large scale decision making because the initiative (gets) distributed.

]]> By: amolpatil2k http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-21 amolpatil2k Wed, 11 Jun 2008 03:39:43 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-21 @astartupaday Thanks for replying. I think opening up anything ends up reducing the value to shareholders. But that's the point, isn't it. The fact that the shareholders are earning off us is bad for us. I know it sounds corny but I have always hated the concept of shareholding. Shareholding is a sort of passive ownership. You share the profit but only in the manner the company lets you. I wouldn't blame anyone, though. It is just that no one among us has been smart enough to invented large scale decision making. When we open something, it is a substitute for large scale decision making because the initiative getting distributed. @astartupaday
Thanks for replying. I think opening up anything ends up reducing the value to shareholders. But that’s the point, isn’t it.

The fact that the shareholders are earning off us is bad for us. I know it sounds corny but I have always hated the concept of shareholding.

Shareholding is a sort of passive ownership. You share the profit but only in the manner the company lets you.

I wouldn’t blame anyone, though. It is just that no one among us has been smart enough to invented large scale decision making.

When we open something, it is a substitute for large scale decision making because the initiative getting distributed.

]]> By: astartupaday http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-20 astartupaday Fri, 06 Jun 2008 23:26:16 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-20 Amolpatil2k - I 100% agree that if Google opened their index, it would be tremendously valuable. However, the question is (and has been since the day they went public): value for whom? Unless Google can show a direct correlation between opening up their index and delivering direct or indirect value to their shareholders, they won't do it. In fact, I'd argue that they can't do it - as a public company they are legally obligated to act in the best interest of their shareholders. That's just one of the many reasons why it's so much more fun to talk about privately-held startups like FF than it is to pay attention to the big, boring public ones. :) Amolpatil2k – I 100% agree that if Google opened their index, it would be tremendously valuable. However, the question is (and has been since the day they went public): value for whom?

Unless Google can show a direct correlation between opening up their index and delivering direct or indirect value to their shareholders, they won’t do it. In fact, I’d argue that they can’t do it – as a public company they are legally obligated to act in the best interest of their shareholders. That’s just one of the many reasons why it’s so much more fun to talk about privately-held startups like FF than it is to pay attention to the big, boring public ones. :)

]]> By: amolpatil2k http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-19 amolpatil2k Fri, 06 Jun 2008 22:46:59 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-19 "We all know the value that Google created out of their index." It is nothing compared to the value they may create by opening up their index. It is all about initiative. If Google opens the index, it passes initiative to third parties. Then we would no longer need Google to INITIATE improvements or features, neither would we be able to blame it for not initiating. “We all know the value that Google created out of their index.”

It is nothing compared to the value they may create by opening up their index.

It is all about initiative. If Google opens the index, it passes initiative to third parties. Then we would no longer need Google to INITIATE improvements or features, neither would we be able to blame it for not initiating.

]]> By: astartupaday http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-14 astartupaday Mon, 02 Jun 2008 00:41:14 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-14 Rob - good points. From a purely mathematical standpoint, FF has the right underlying distribution model to grow to the size needed to pull off what I described above. However, the big caveat is that the viral growth starts to taper off as it reaches the peak of their *addressable* market, which is really important. Right now, their addressable market really is only the hardcore info junkies, but if they can expand out a little to offer something that would appeal more to a mainstream audience (or something like Twitter goes more mainstream), then the addressable market cap goes way up, and all the stuff I talked about in phase 2 and 3 start to open up. Rob – good points. From a purely mathematical standpoint, FF has the right underlying distribution model to grow to the size needed to pull off what I described above. However, the big caveat is that the viral growth starts to taper off as it reaches the peak of their *addressable* market, which is really important.

Right now, their addressable market really is only the hardcore info junkies, but if they can expand out a little to offer something that would appeal more to a mainstream audience (or something like Twitter goes more mainstream), then the addressable market cap goes way up, and all the stuff I talked about in phase 2 and 3 start to open up.

]]> By: Joshdj14 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-13 Joshdj14 Sun, 01 Jun 2008 17:58:52 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-13 Very good points there. Over the last several months, Google has been lacking the "filter" which FF uses to get the most specific items in a single search. For instance, I have a problem with a software piece. Google gives me the results and I find nothing specific to what I wanted. Not that it needed to be, but Google rarely finds good answers for you, which could even bring Yahoo Answers up a notch due to more Yahoo searches. Very good points there. Over the last several months, Google has been lacking the “filter” which FF uses to get the most specific items in a single search. For instance, I have a problem with a software piece. Google gives me the results and I find nothing specific to what I wanted. Not that it needed to be, but Google rarely finds good answers for you, which could even bring Yahoo Answers up a notch due to more Yahoo searches.

]]> By: Rob http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-12 Rob Sun, 01 Jun 2008 13:11:44 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-12 Friend Feed is even less mainstream than Twitter and Twitter, as far as I can tell, is only made up of people behind the curtain (internet marketers talking to internet designers talking to programmers talking to journalists.) Friend Feed? Only the most hardcore information junkies seem to be using it as it's far more than a twitter close- subscribe to a few busy people and it's ALL NOISE. Twitter, minus following someone like Scoble who absolutely bombs the system (hundreds of tweets a day,) is really much less noisy. So if only a subset of Twitter's already limited user base are actually interested in the service I have a hard time envisioning it going wide enough to matter to the larger world. Friend Feed is even less mainstream than Twitter and Twitter, as far as I can tell, is only made up of people behind the curtain (internet marketers talking to internet designers talking to programmers talking to journalists.) Friend Feed? Only the most hardcore information junkies seem to be using it as it’s far more than a twitter close- subscribe to a few busy people and it’s ALL NOISE. Twitter, minus following someone like Scoble who absolutely bombs the system (hundreds of tweets a day,) is really much less noisy. So if only a subset of Twitter’s already limited user base are actually interested in the service I have a hard time envisioning it going wide enough to matter to the larger world.

]]> By: Hutch Carpenter http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-11 Hutch Carpenter Sat, 31 May 2008 20:21:37 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-11 You've hit on something about FriendFeed. It seems to have so many opportunities in terms of social graphs, viral distribution, mass human-filtered search, etc. It will take time to realize all of that, but the potential does seem to be there. Broadening the user base will be key. You’ve hit on something about FriendFeed. It seems to have so many opportunities in terms of social graphs, viral distribution, mass human-filtered search, etc. It will take time to realize all of that, but the potential does seem to be there. Broadening the user base will be key.

]]> By: On the shoulders of giants « The Constant Beta Blog http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-10 On the shoulders of giants « The Constant Beta Blog Sat, 31 May 2008 19:45:18 +0000 http://tchblg.wordpress.com/2008/05/31/why-friendfeed-deserves-a-one-billion-dollar-valuation/#comment-10 [...] Louis Gray om Friendfeed Explore posts in the same categories: Uncategorized [...] [...] Louis Gray om Friendfeed Explore posts in the same categories: Uncategorized [...]

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