Mochi Media (LTV, Monday, Week 5)
launching-technology-venturesyear-twoAd networks are fabulous businesses at very large scale if you get there first.
Otherwise...
Three-way network: need to balance attention to advertisers, publishers, and game developers.
Really, really hard...
"Alignment"
Mochi probably shouldn't have taken funding from big-fund VCs (Accel). How can this model scale? Did they really want it to?
It doesn't seem like it.
Obviously, it's hard to turn down big-name venture investors...
It's dangerous to scale before you've nailed the business model.
==> End up investing heavily in functions that you later decide you don't need.
==> Mess up culture.
==> Make it very hard to change course.
Bonus: Thoughts from Jeff Bussgang (or, "thoughts on Lean Startups from the king of the fat start-up")
-- Winning the market is the goal. Lean Startup is just a methodology. There are no bonus points for "running lean."
-- There are some situations where fat makes a lot of sense => cash is a weapon in tough times, raising money is easier when you don't need it, aiming high is how you build a great company.
CONFIDENCE INSPIRES CAPITAL, CAPITAL INSPIRES CONFIDENCE.
When you raise a big round, people start believing in the venture. You can attract great people, you can woo big-name partners, etc. => virtuous cycle => "Dance of the Dreamweaver"