Why are VCs putting money into Quora when there are no plans for a revenue stream?

Answer by Jason M. Lemkin:

The basic idea of "tornado" investing (Geoffrey Moore's term) is to delay monetization in B2C investing if monetizing ihibits massive userbase "hypergrowth" (ultimately to a Top 50-100 or better website to make this work).  If monetization inhibits the "tornado", the rapid switch to a new paradigm from the niche-adoption phase of "The Bowling Alley" (which would be easy to monetize, albiet not to massive levels) … it isn't worth it.

It justifies not just Quora, but perhaps even more relevantly, Twitter, Instagram, Pinterest, Tumblr, etc.  Pinterest was apparently valued at well over a billion dollars without a revenue stream.

It does make sense, albiet there can only be a handful of success stories here.

But just one pretty much makes the math work.  Facebook is the greatest VC investment of all time, so far.

What takes guts is investing before the Tornado.  That's investing in Quora, which is still a (well populated) Bowling Alley.  But if you invest after the Tornado, it's not only obvious … it's too late.

Given the track record of the Quora team, and its obvious and early Bowling Alley success … it seems like a fair bet. 

View Answer on Quora

4 Things which helps in ‘Decision Making’

Digiage

Image

Life of a entrepreneur never happens to be either flat or at 90 degree growth. Among all the things which matters, ability of ‘decision making’ matters the most, because this is what makes an entrepreneur. Even if somebody is not an entrepreneur, he is known by the decision he makes and not by plans he is having. ‘Decision making’ is nor a process, neither it has any rule book; it is the result of state of mind, which helps us to win over our fears without losing the sight at risk, reflect promptly and act more promptly. During the course of my professional and entrepreneurial journey, I have gathered few point which helps in improve decision making ability.

1)      ‘Invisible’ is ghost and it is meant to scare you only: We often get scared by some invisible fear, which has been bequeathed on us by our social structure and…

View original post 513 more words

Limitations Do Not Apply in Entrepreneurship

Entrepreneurial Ambitions

DefyLimitations
Are you a person who lets perceived limitations dictate what you can and cannot do? If so then entrepreneurship is definitely not the right option for you. Why else do you think entrepreneurs are described as risk takers and innovators? It is because they are a group of individuals who do not view a challenge as limiting but rather as an opportunity to grow and excel. Were average people pause and contemplate, entrepreneurs look and pursue. So what limits you from truly becoming an entrepreneur?

View original post 357 more words

Google Introduces “Gmail Blue” — It’s Completely Blue, Because Brown Was a “Disaster”

April Fool’s day and Google is back at it again !

TechCrunch

The Google April Fool’s train continues with the announcement of “Gmail Blue.” Yes, it’s a version of Google’s email service where everything is the color blue. The YouTube one from earlier was OK, and the Nose one was just so-so, but I’d actually use this product if it existed, especially since it took six years to “develop the technology.”

Can you imagine something like this actually happening? Some people flipped out about the new compose screen becoming the default, so they’d lose their mind if Google changed all of the colors in the email service.

The real bit of news here? Gmail turns nine tomorrow. Yes, we’re all old.

The video for Gmail Blue is pretty damn hilarious and worth checking out. Be sure to count the number of buzzwords used:

I can’t help but wonder if this is a not-so-subtle poke at Facebook…

View original post 94 more words