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Joined 2 years ago
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Cake day: June 30th, 2023

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  • Others have basically captured it, but the real answer is a massive change in the overall risk profile held by venture capital firms. The time of reckoning has come, and it’s time for everyone’s (or at least VCs’) favourite three letters: ARR (Annual Recurring Revenue).

    The last twenty years, we’ve seen this sort of spray-and-pray model, where 99 bad investments could be offset by 1 “unicorn”. The risk appetite seems to have shifted largely because 1.) there’s a higher volume of early stage concepts (so there’s more bad ideas), and 2.) there’s either fewer unicorns, or the unicorns that mature are ultimately less valuable.

    Crunchbase put out a good analysis of the current trend of global venture dollar flow:

    The Party’s Still Over: The VC Downturn In 6 Charts

    You can read news from various outlets - some say it’s a post-pandemic correction. Some say it’s because labour is too expensive. But the bottom line is that VCs aren’t willing to spend money on “users-in-lieu-of-revenue” like they once were, and I honestly don’t blame them. There were a lot of really, egregiously stupid ideas coming out of SV, and their wax wings melted. sad_trombone.mp4

    Adam Kotsko summed this entire phenomena up nicely:


  • I think what Reddit fails to realise is that there’s a large contingent of their base that aren’t Reddit users… they’re Apollo/RIF/Boost/etc. users. They’re a population seeking a very specific type of UX which Reddit either can’t or won’t deliver. People didn’t willingly use their trash can fire of a site when Alien Blue was termed - they migrated to Apollo.

    I’m WILDLY impressed with Memmy so far, partially because it’s answering the user pain point above - as a casual user, I don’t want to get into the Fediverse weeds. I want an incredible streamlined experience that’s reliable, fast, and with a responsive developer.

    Can’t wait for Memmy to blow up and to use it heavily over many years.