So Google pays nearly £900m for YouTube, well done Chad and Steve !!
But just imagine it they had attempted to get investment from the BBC’s Dragons Den programme instead of Sequoia Capital..
Chad and Steve – We have this great idea.. a site where people upload they home videos and then let everybody view them from free !!
Dragons – OK, so you charge people to upload the videos.. Internet bandwidth is expensive.. what is your margin ?
Chad and Steve – Actually, er.. you are right it is expensive and we expect to spend about a million dollars a month.. but um.. we don’t think we should charge users to upload either..
Dragons – So you have a business that costs a least a million dollars a month to run, and has no revenue stream – what were you looking for in terms of investment from us ?
Chad and Steve – Well dragons we would like £50,000 for a 0.005 % share of the company..
Evan – Today Chad and Steve left the den empty handed..
Seriously I understand the potential advertising angle here but even with a stock only transaction is this really worth the money?
To understand why YouTube has become such a success however just watch this – all power to the geeks !!
Written and submitted from Starbucks, The Strand , London, using the t-mobile wifi network.