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Startups Adjust to Web's Down Cycle (wsj.com)
26 points by Pr0 1668 days ago | hide | past | web | 4 comments | favorite

Down cycle? I would just call it they possibly got the IPO wrong.

Every time I hear the word SoLoMo they give me the impression they have no idea what they're talking about.

I don't think they got it wrong, but rather the market is reacting to the nature of the business. The Groupon's of the World are too labour intensive, and will keep the op costs very high. You can't keep posting quality deals without someone having that conversation with the vendor. As long as that's the model, the costs are going to be too high, and far from profitable. The market is properly reacting to their business cycle. Living Social the same.

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