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New dot com companies

Is the dot com company returning? See http://www.plaxo.com/css/about/news/040615.html

Can someone please explain how a company that connects people's address books (without an obvious source of revenue) is worth "a pre-money valuation of $7 million" and manages to raise $20 million in investments?  Am I missing something here, or are we back to the dot com days of measuring a company's value by the number of eyeballs it attracts?  What are these investore seeing in a company like this, versus a company like Fog Creek, which has real sales, real revenue and real profit?

Puzzled
Sunday, August 22, 2004

Hmm, that so-called "big idea" sounds like a crock of shit to me. Address books that automagically update - BFD.

Also, irrespective of the fact that Bambi Fransisco (?!!) writes for CBS marketwatch I also couldn't see any disclosure of interest...

TheGeezer
Sunday, August 22, 2004

Simple - people want to communicate. Any ideas to connect them better are and should be well-appreciated. This is where you'll earn a lot of money in the coming few years.

Pythonic
Sunday, August 22, 2004

It's from the guy that did Napster, so the investors are looking for another blockbuster and forgetting about the sophomore curse.

mvh
Monday, August 23, 2004

YM the Napster that got the arse sued off it? Wow, that sounds like a good deal.


Monday, August 23, 2004

Is it me, or did these guys copy the CBS MarketWatch site wholesale, ads and all? Did they even bother to ask permission to reprint it? Do they think this ads credibility to the article rather than just printing it using the standard Plaxo template? Seriously, the CBS MarketWatch log is:

http://www.plaxo.com/css/about/news/040615_files/large_blk_logo.gif

"040615_files" ?

And what's with the "we're following in the footsteps of Yahoo and Google" crap? It's like saying "The Dodgers were from Brooklyn, I'm from Brooklyn. The Dodgers played baseball, I play baseball. My potential is huge."

Anyway, Plaxo is kind of cool, I learned about it... maybe a year ago? Of course the only person I know who adopted it wholesale is this girl who keeps this mailing list where she emails the entire world all sorts of useless trivia about her life and actually sends birthday cards.

www.MarkTAW.com
Monday, August 23, 2004

http://sleepyhead81.blogspot.com/2004/06/creating-viable-plaxo-alternative.html

Espen Antonsen
Monday, August 23, 2004

I love to see FUD on a small scale.

www.MarkTAW.com
Monday, August 23, 2004

Take a look at Kintera or Lindows if you want DotCom nonsense.  What makes them DoCom?  I don't think it's necessarily that the product is internet / web based, but that the equity markets play is at the forefront, and that the fundementals are S-H-A-K-E-Y

Sassy
Monday, August 23, 2004

What makes the investors willing to pour so much money into this? 

Puzzled
Monday, August 23, 2004

"Of course the only person I know who adopted it wholesale is this girl who keeps this mailing list where she emails the entire world all sorts of useless trivia about her life and actually sends birthday cards."

I've got a guy, I believe his name is Tim Lewis, who forwards every pro-soldier, pro-USA email he comes across to a huge list of people, and somehow I'm on that list. I've often wondered how in the world I ended up on his To: list, but always hesitate from asking lest he be a cousin or something.

As a sidenote, that page mentioned by the OP was blocked by my corporate firewall for having unapproved software on it (i.e. comet cursor style).

Dennis Forbes
Monday, August 23, 2004

"What makes the investors willing to pour so much money into this? "

They just don't know any better.  They don't know the markets, they don't know the companies.  They read the article above and that's the sum total of their knowledge.

Sassy
Monday, August 23, 2004

"What makes them DoCom?"

The customer is the Venture Capitalist rather then the person consuming the product (consumer).

I.e., the whole company is built to sell the idea to the Venture Capitalist.

Now, if the VCs were a bit smarter, they'd recognize this, but, then THEY are generally focused on the 5 year EXIT STRATEGY, i.e., the IPO.  You can get all the way to the IPO and beyond without a viable business.

Mr.Analogy (Shrinkwrap ISV company owner)
Monday, August 23, 2004

I doubt investors really bother with company potential and fundamentals. 

I think they look at it more from investing n% in high risk ventures, another n% in moderate risk and so on.  I think they take companies at face value, throw money at them knowing that a certain percent will succeed which will return n% more than their investment plus inflation.  In other words, they just work the percentages.

That's just how it looks to me.

this post for sale
Tuesday, August 24, 2004

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