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How Do You Select A Revenue Model For Your Startup?

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This is the most common model touted by Internet startups today, the so-called Facebook model, where the service is free, and the revenue comes from click-through advertising. This is a very popular model today for Internet services, calling for monthly or yearly low payments, in lieu of one value or cost-based price. Freemium model.

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

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The early history of MySpace is inextricably intertwined with that of Intermix, a small-cap publicly traded Internet company in Los Angeles where I worked as corporate counsel from 2004-06. MySpace was incubated by a small team of employees within Intermix in 2003 (Chris DeWolfe, Tom Anderson and four others).

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7 Startup High Risk Factors That Scare Investors

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On the Internet, I would add new social networking sites, and new matchmaking sites. Businesses with a low growth rate or a small opportunity (less than $1B) are considered high risk by investors, who get measured on portfolio return over time. These include food service, retail, consulting, work at home, and telemarketing.

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Second-Class Investor Citizens: Facebook’s IPO and Dual-Class Equity Structures

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This is nothing new; long favored by family-controlled media empires such as Rupert Murdoch’s News Corporation , among Internet firms alone, Google took a dual-class approach when going public in 2004. If these terms sound onerous and lopsided, it’s because they are.

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