Social Media

Why iLike Sold To MySpace For So Little

"The recent distressed exit of iLike reminds us of the need to build real value in our startups if we hope to create lasting companies and wealth…

If we look over the past fifteen years of webtime, we see a few categories emerge where real value was created:

  • Efficiency/Cost Reduction (DoubleClick, RedHat, PayPal, Craigslist)
  • Monetizeable audience (Yahoo!, Google, AOL)
  • Repeat customer commerce (Amazon, eBay, Netflix)
  • Solve a pain point (Checkpoint, Postini)
  • Create new markets (EA, Google)

…I think we have returned to a time where eyeballs don’t necessarily equate to value, and rightfully so."

David Pakman, partner in venture capital firm Venrock and former CEO of eMusic. More at Silicon Alley Insider.

Also: Music Startups – What A Crappy Investment

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1 Comment

  1. I will say this much. Now that everyone is satisfied that music-related investments suck, now’s the time to make one. Learn from the past and invest in propositions that truly make sense. There is still a lot of opportunity in this industry.

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