One Last Thought on Tech Startups and Failure
This week I’ve been talking a fair bit about how I no longer have a bunch of confidence in FourSquare and how their failure to become what I hoped/thought they could has changed how I look at Tech Startups. I had one last thought about this and it concerns how FourSquare relates to my favorite big “success” to hate on, GroupOn:
- GroupOn had so many people lack on to its original business model that it had to be a success, right? Wrong it lacked long-term potential because of low-barriers to entry and no vertical integration.
- Foursquare had so much long-term potential that it had to be a success, right? Wrong, it only got a moderate number of users to latch on to its original business model so now it’s stuck with a legacy base.