Users vs. Patents: what makes a successful Web business?

2 pointsjonathan18y ago0 comments

Hi fellow tech. entrepreneurs, There is this thing I'd like to discuss and get your feedback on. OK, considering the last 2 biggest acquisitions within the Web industry, a.k.a. MySpace and YouTube, nobody can deny that this business has derived to a new form: this is no longer tech. driven; this is about a company's ability to build a large user base, or let me rephrase it: this game is all about your ability to REACH your targeted users and, of course, KEEP them. It looks like that should be the goal of any tech. founder because this is what account for dollar value, not the IP. This phenomenon makes other people wondering: how about the company's tech. value? How about the good old patented algorithm? Are we living in a world where proprietary technology does not mean big bucks anymore? Or even worse, has that become unnecessary?

Well... one thing's for sure; neither MySpace nor YouTube patented anything before going online. These 2 applications were module-based meaning that their frames were already available. Their "tour de force" was to articulate a smart vision and marketing strategy to reach their potential audience. On one hand MySpace leveraging on its eUniverse.com network to promote its service, on the other YouTube mastering the art of viral marketing. As opposed to most of their competitors/copycats, they knew how to get big fast, at least faster than anybody else. In other words, implementation is much more important than technology. We can enlarge this phenomenon to non-Web products: the iPod is a good example. Its success is based on the same pattern; Apple's people neither invented nor patented the MP3 player technology, they just came up with the smartest UI ever combined with a strong marketing campaign.

That's why I feel like many VCs are not in line with today's web rules; they almost always look for deep IP (the genius algorithm!!)... like being Google was the ONLY way to be successful.

OK, now the question is how do we get there? How do we get big fast? Well... first, of course, you need to build something that people want (thanks pg), that's how you get many returning users. But also, you need to become a master at spreading the word and reaching your target! I have few ideas on the subject, but I'm far to be an expert...and this is precisely why we are applying to winter 08 funding. As many seed start-up companies, we do not need the money YC offers...actually we need something close zero dollar to get started. All we are looking for is to get in touch with this network of experts "from The Valley" who know how to get it done.