Comments on: The European startup view from the sidelines http://www.fiftybyfifty.com/lifeoffarhan/2009/12/01/the-european-startup-view-from-the-sidelines/ chapter four - my 30s Thu, 17 Nov 2011 10:56:00 +0000 hourly 1 http://wordpress.org/?v=3.1 By: thundre http://www.fiftybyfifty.com/lifeoffarhan/2009/12/01/the-european-startup-view-from-the-sidelines/comment-page-1/#comment-523 thundre Thu, 10 Dec 2009 20:20:02 +0000 http://www.fiftybyfifty.com/lifeoffarhan/?p=299#comment-523 Perhaps the lack of seed capital for attempts at new markets? Startups in Europe have learned they can only be successful if they do something that will be immediately profitable/successful, which means an established market rather than a new one. This can result in a decent sized success, but not a stellar one. <br><br>Europe wouldn't have worked for e.g. Google, who had no business plan for some time until it picked up Overture's pay-per-click text ad model. Over here the founders would have been told to come back when they had a million hits a month and a solid revenue stream. In our alternative European reality they would have given up and by now be employed at the UK branch of Yahoo. Perhaps the lack of seed capital for attempts at new markets? Startups in Europe have learned they can only be successful if they do something that will be immediately profitable/successful, which means an established market rather than a new one. This can result in a decent sized success, but not a stellar one.

Europe wouldn't have worked for e.g. Google, who had no business plan for some time until it picked up Overture's pay-per-click text ad model. Over here the founders would have been told to come back when they had a million hits a month and a solid revenue stream. In our alternative European reality they would have given up and by now be employed at the UK branch of Yahoo.

]]> By: Fred Destin http://www.fiftybyfifty.com/lifeoffarhan/2009/12/01/the-european-startup-view-from-the-sidelines/comment-page-1/#comment-519 Fred Destin Wed, 02 Dec 2009 12:36:26 +0000 http://www.fiftybyfifty.com/lifeoffarhan/?p=299#comment-519 Yes you are right on that. Facebook is sucking the life out of every European SN upstart (Bebo, Netlog which seems to have done a nice refocus job on S-gaming), DailyMotion is trying to hold against YT, etc. I think it's fascinating, if you want to do the exercise, to map the PayPal diaspora and look at all the companies these guys have built. <br><br>Success breeds success, it will take patient work for us to achieve the same. Look at the impact that the Skype boys are having (ok Joost failed, but boy are they trying hard: Atomico, Rdio) and the Skype diaspora (Ek @ Spotify, the Ambient Sound Investments guys). Or Michael Birch and Brent Hoberman. The guys who made big invest in and mentor the guys who will make it even bigger. Yes you are right on that. Facebook is sucking the life out of every European SN upstart (Bebo, Netlog which seems to have done a nice refocus job on S-gaming), DailyMotion is trying to hold against YT, etc. I think it's fascinating, if you want to do the exercise, to map the PayPal diaspora and look at all the companies these guys have built.

Success breeds success, it will take patient work for us to achieve the same. Look at the impact that the Skype boys are having (ok Joost failed, but boy are they trying hard: Atomico, Rdio) and the Skype diaspora (Ek @ Spotify, the Ambient Sound Investments guys). Or Michael Birch and Brent Hoberman. The guys who made big invest in and mentor the guys who will make it even bigger.

]]> By: farhanlalji http://www.fiftybyfifty.com/lifeoffarhan/2009/12/01/the-european-startup-view-from-the-sidelines/comment-page-1/#comment-518 farhanlalji Wed, 02 Dec 2009 00:59:54 +0000 http://www.fiftybyfifty.com/lifeoffarhan/?p=299#comment-518 Thanks Fred.<br><br>If we look at the US media companies that are making acquisitions though they're new media companies that are a lot younger then the media companies in Europe. Why haven't we seen the same kind of media companies emerge in Europe?<br><br>Digital media IPOs maybe harder, but it's gotta be better for the start up eco-system, no? If a company get's big enough to IPO hopefully it get's big enough to become an acquirer of other startups. The Google, Yahoo! were created in the same kind environment as we see in Europe today (old media companies not buying digital media companies). These companies IPO'd which then allowed the US new media M&A market in this area to become what it is today.<br><br><br><br><br><br>________________________________ Thanks Fred.

If we look at the US media companies that are making acquisitions though they're new media companies that are a lot younger then the media companies in Europe. Why haven't we seen the same kind of media companies emerge in Europe?

Digital media IPOs maybe harder, but it's gotta be better for the start up eco-system, no? If a company get's big enough to IPO hopefully it get's big enough to become an acquirer of other startups. The Google, Yahoo! were created in the same kind environment as we see in Europe today (old media companies not buying digital media companies). These companies IPO'd which then allowed the US new media M&A market in this area to become what it is today.

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]]> By: Fred Destin http://www.fiftybyfifty.com/lifeoffarhan/2009/12/01/the-european-startup-view-from-the-sidelines/comment-page-1/#comment-517 Fred Destin Wed, 02 Dec 2009 00:49:47 +0000 http://www.fiftybyfifty.com/lifeoffarhan/?p=299#comment-517 Hoping no trolls this time :-) Two comments:<br><br>a/ The point that Klaus was making is I think as follows: M&A is your most likely exit route for most companies. European media companies are poorly managing the digital evolution (generally) and thus we cannot rely on strong local acquirors for our businesses. So we are forced to seek IPO (harder) or seek US M&A buyers (hardest).<br><br>b/ There are a bunch of public companies although most are actually e-commerce companies including lastminute, such as RightMove or Seloger to take real estate as an example (both bn market caps). And we can add Yoox this week :-) There are very few digital media companies. E-commerce can be scaled fairly massively in local domestic markets (witness in France cdiscount, pixmania, vente-privee and so on). Hoping no trolls this time :-) Two comments:

a/ The point that Klaus was making is I think as follows: M&A is your most likely exit route for most companies. European media companies are poorly managing the digital evolution (generally) and thus we cannot rely on strong local acquirors for our businesses. So we are forced to seek IPO (harder) or seek US M&A buyers (hardest).

b/ There are a bunch of public companies although most are actually e-commerce companies including lastminute, such as RightMove or Seloger to take real estate as an example (both bn market caps). And we can add Yoox this week :-) There are very few digital media companies. E-commerce can be scaled fairly massively in local domestic markets (witness in France cdiscount, pixmania, vente-privee and so on).

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