Not The Hype Machine
Rob Hyndman says in his comment to my Jealousy post yesterday:
It would be easy, for example, for someone to accuse you of holding
to your views just because you’re a VC trying to hype the market and
get something going. I doubt that’s true, but it would be fair game if
the discussion is to be at that level …
Posted by: Rob Hyndman
I have no desire to hype the market for web 2.0 companies. That’s not what I am trying to do with this blog.
I think companies should be valued at a discount to the future cash flows, plain and simple.
What I am trying to do is use companies like Facebook and YouTube as case studies to think about potential business models and how they might impact current and future valuations.
That, after all, is a big part of my job. If we can learn from their choices, we can help advise our own portfolio companies.
There is a question out there in the marketplace about the scalability of web services. Many think they cannot scale into large businesses. Brad addressed this exact issue in his post on the Union Square Ventures weblog last month.
Clearly we think these businesses will scale. And so the point of these posts is to explore how they might scale into billion dollar valuations.
I hope everyone reads them with that context in mind.
Because this is not The Hype Machine. You can find that wonderful web service here.