At first we got confused about how to make money out of the internet. We thought we should be able to demand payment. Silly us, we forgot about the first lesson in economics – that pesky demand and supply. Supply doesn’t automatically equal demand – especially financial demand. On the internet things work in reverse. First value must be created, then it is extracted. It’s the opposite to the previous industrial world of buying and selling.
Now it’s proving, then earning.
3D printing is really starting to blow my mind. As far as I can tell it is taking the information we are currently living through and making it physical. It’s the missing link. The start of being able to create everything from nothing – ephemeralization. Converting the first 20 elements into stuff, by organizing information, ones and zeros. About 20 years from now, you’ll remember talk about 3D printing, the same way we remember hearing stuff about a connected world through computers in the mid 1980′s. I think it will be more disruptive and bigger than the internet.
In order to just make sure you are across what is happening here’s the most famous Youtube Clip about 3D printing which is from the Discovery channel. In the coming weeks I’ll be posting a large article about all the implications on the world. And before you watch the clip below here is a list of some things that have already been printed by such machines:
Bicycles, cars, tools with moving parts, furniture, drone aircraft and even balls bearings.
It’s coming and it is going to change everything.
As far as I can tell their are 4 main reasons that a company will buy your startup. Particular in the web / tech fields:
- Talent buy out
- Technology buy out
- User buy out
- Revenue buy out
What’s interesting is that these buyouts happen in that order as well.
The reality is that it’s rare to be the focus of a talent buyout unless you and your team have an incredibly unique set of skills. The tech buy is less difficult and is the savior of many tech startups who have cool stuff with no revenue or customers. In fact, it’s rare enough that we should ignore it as a possibility.
The reality for you and me is that buy out 3 and 4 is where we are likely end up. So the question we must ask ourselves are these:
* If we are aiming for a user buyout, how long can we survive without revenue?
* If we are aiming for a revenue buyout, why don’t we just keep what we’ve built?
Pop culture knowledge used to be about knowing who was atop of the leader board:
- the top of the billboard chart
- the number 1 movie
- the best selling pair of jeans
- the best selling athletic shoe
- the best picture at the Academy awards
- the most popular celebrity endorser
- … popularity contest X
This knowledge was a quick reference asset. It was worth keeping tabs on.
Pop culture has changed.
Now it’s about knowing what’s coming next. Knowing who’s already here is of little value. Anyone can find that out in a moments notice, it’s public and omnipresent on the web. Knowing who or what will be hot 6 months from now is where the currency is. And that takes constant assessment and curation of the content. That is an art in itself.