Ask HN: Business to Consumer vs. Business to Business startups

6 pointsRenatZubairov2 comments

After seeing many VC and Angel investment portfolios and requirements I somehow got an impression than B2C type of startups are more welcome than B2B.

My question is: is it true? And if yes what are the reasons for that?

Right now the Google (corr. from Facebook) capitalization is bigger than SAP or IBM cap., but that can't be the only reason?

Renat

View on HN

B2C startups have bigger caps because the network externalities allow for bigger bubble valuations (1MM users who never pay for anything, because the internet is free = $1B valuation). As PG has said- the value of such a firm is basically the chance they're the next google; therefore, no need to be profitable.

B2B businesses are much more defined, much more down-to-earth, and make good money. Whilst it won't be as sexy, it will make you money- possibly even without ever needing an investor.

facebook capitalization is NOT bigger than SAP or IBM

Reply on news.ycombinator.com