News and emails about new web startups being established here and there pop up like they are not afraid of a bubble burst. But who’s going to blame them? Startups are established to fill the expanse of the market needs or wants, much like as software are being created to fill the computer memories. But based on how they deliver, I only see four exit points for these startups:
* Failure - poor business plans, poor execution, market inefficiencies
* Acquisition - startups dressing up for acquistion maybe the next eBay’s Skype or Google’s YouTube
* Re-invent themselves - business failures can be startup’s best friend
* Merge of equals
With the spate of these web startups, will you succumb to their invitation? Here are some guidelines:
* Is this really what I need or simply something to doodle about?
* Will this enhance my workflow, connections and mobility, or am I just reacting to peer pressure?
* Will I be able to monetize from this Web application, or is it the other way around (as a consumer)?
Web 2.0 for all its hype basically falls into two categories according to Danny Ayers: The Web as Platform and The Architecture of Participation. Yet, I see it simply as those who cater to human wants or needs. While Google, although relatively stable compared with others, still offer new web features using the "fail fast" strategy (that is, launch, listen, improve, launch again), small startups run the risk of going out of business if they fail slowly and miserably. Om Malik says that even in Web 2.0, scale and size matter.
One of the speakers at the Go Negosyo forum recently held in Pampanga talk about startups:
1) The market is looking for better products. Yet most Web 2.0 startups are simply me-too varieties.
2) Money or capital is looking for markets. Yet venture capital is being poured on startups that offer little or no differentiantion at all. Forget the mobile version of these web applications because the wireless infrastructure is not yet ready for the high-speed, scalability and reliability that the mass market is looking for.
So why do Web 2.0 startups abound?
Maybe, it’s partly due to excesses of venture capital and a huge market to follow. Add to that the propensity of the Americans to bask in the spirit of entrepreneurship even when shrewd and solid business plans are short in supply. Just follow what techdumpster is saying.
* Failure - poor business plans, poor execution, market inefficiencies
* Acquisition - startups dressing up for acquistion maybe the next eBay’s Skype or Google’s YouTube
* Re-invent themselves - business failures can be startup’s best friend
* Merge of equals
With the spate of these web startups, will you succumb to their invitation? Here are some guidelines:
* Is this really what I need or simply something to doodle about?
* Will this enhance my workflow, connections and mobility, or am I just reacting to peer pressure?
* Will I be able to monetize from this Web application, or is it the other way around (as a consumer)?
Web 2.0 for all its hype basically falls into two categories according to Danny Ayers: The Web as Platform and The Architecture of Participation. Yet, I see it simply as those who cater to human wants or needs. While Google, although relatively stable compared with others, still offer new web features using the "fail fast" strategy (that is, launch, listen, improve, launch again), small startups run the risk of going out of business if they fail slowly and miserably. Om Malik says that even in Web 2.0, scale and size matter.
One of the speakers at the Go Negosyo forum recently held in Pampanga talk about startups:
1) The market is looking for better products. Yet most Web 2.0 startups are simply me-too varieties.
2) Money or capital is looking for markets. Yet venture capital is being poured on startups that offer little or no differentiantion at all. Forget the mobile version of these web applications because the wireless infrastructure is not yet ready for the high-speed, scalability and reliability that the mass market is looking for.
So why do Web 2.0 startups abound?
Maybe, it’s partly due to excesses of venture capital and a huge market to follow. Add to that the propensity of the Americans to bask in the spirit of entrepreneurship even when shrewd and solid business plans are short in supply. Just follow what techdumpster is saying.
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