

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

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.<p>My question is: is it true? And if yes what are the reasons for that?<p>Right now the Google (corr. from Facebook) capitalization is bigger than SAP or IBM cap., but that can't be the only reason?<p>Renat
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maxhenderson
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.

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tessant
facebook capitalization is NOT bigger than SAP or IBM

