Comments on: Yelp Raises More Money for Business Stuff and Parties http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/ Keeping Tech Sexy Wed, 28 Oct 2009 02:05:44 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: SutroStyle http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/comment-page-1/#comment-5854 SutroStyle Mon, 03 Mar 2008 09:46:48 +0000 http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/#comment-5854 @Cyndy Exactly, that's why CL makes sense, and Yelp I am not sure... Somehow VC model is broken I think, it's optimized for building sandcastles. Microsoft, Intel were founded with no VC. I actually do not think Google will hang around for long- I think 10 years maximum. @Cyndy

Exactly, that’s why CL makes sense, and Yelp I am not sure…

Somehow VC model is broken I think, it’s optimized for building sandcastles. Microsoft, Intel were founded with no VC. I actually do not think Google will hang around for long- I think 10 years maximum.

]]> By: Cyndy Aleo-Carreira http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/comment-page-1/#comment-5794 Cyndy Aleo-Carreira Fri, 29 Feb 2008 19:57:49 +0000 http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/#comment-5794 @Sutro: Did I miss the part where Craigslist had to do four rounds of funding in order to succeed? @Sutro: Did I miss the part where Craigslist had to do four rounds of funding in order to succeed?

]]> By: SutroStyle http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/comment-page-1/#comment-5742 SutroStyle Thu, 28 Feb 2008 10:03:05 +0000 http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/#comment-5742 I listed the likely reasons why Yelp had to do this in TC: Local interest websites are always non-viral, because they operate in the disjoint “internets” of each metropolitan area. So one needs to wait a very long time before they reach decent size, even withing one little metro subnet. For Craigslist, it took 7-8 years (probably 6 yrs to saturate bay area). VCs will not wait that long. To accelerate this, you can throw money at the distribution/marketing. So to distribute Yelp faster even within SF, they had to spend at least $1m on marketing, but I suspect they burnt even more on that. Having to spend this much clearly set them on the VC path. VCs are looking for a "big hit", because this is their business model. So they pump even more money. It is not a coincidence that no VC funded local site came out of web 1.0. It's a very tough to accomplish this on a VC-acceptable timescale unless you have some genious distribution idea. I listed the likely reasons why Yelp had to do this in TC:

Local interest websites are always non-viral, because they operate in the disjoint “internets” of each metropolitan area. So one needs to wait a very long time before they reach decent size, even withing one little metro subnet. For Craigslist, it took 7-8 years (probably 6 yrs to saturate bay area). VCs will not wait that long. To accelerate this, you can throw money at the distribution/marketing.

So to distribute Yelp faster even within SF, they had to spend at least $1m on marketing, but I suspect they burnt even more on that. Having to spend this much clearly set them on the VC path. VCs are looking for a “big hit”, because this is their business model. So they pump even more money. It is not a coincidence that no VC funded local site came out of web 1.0. It’s a very tough to accomplish this on a VC-acceptable timescale unless you have some genious distribution idea.

]]> By: » Yelp: $200M valuation, $31M total funding, 8M uniuqes, SEO – all for local reviews Web 2.0 Money: The Money & Business Behind the Web 2.0 Innovations http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/comment-page-1/#comment-5724 » Yelp: $200M valuation, $31M total funding, 8M uniuqes, SEO – all for local reviews Web 2.0 Money: The Money & Business Behind the Web 2.0 Innovations Wed, 27 Feb 2008 21:35:59 +0000 http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/#comment-5724 [...] http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/ http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/ http://valleywag.com/tech/jeremy-stoppelman/the-hard-life-of-a-web-founder-244590.php [...] [...] http://www.techcrunch.com/2008/02/26/yelp-raises-15-million-fourth-round-valuation-200-million/ http://www.drama20show.com/2008/02/27/yelp-raises-more-money-for-business-stuff-and-parties/ http://valleywag.com/tech/jeremy-stoppelman/the-hard-life-of-a-web-founder-244590.php [...]

]]>