twitters investors have run out of money. the massive hits to the market have taken their toll, and bad loans elsewhere have forced investors to pull the plug.
at the moment the scenario is improbable but not impossible. if you said lehman brothers and wamu were going to go bust two years back you would have been the laughing stock of wall st. if a bank that has been in business for hundreds of years through recessions and depressions fail how strong are web 2.0 start ups?
can we be so confident that these startups which have not yet been able to develop a monetisation model are insulated?
here are some potential issues that i see:
- venture capital firms have money heavily invested in companies are waiting for the right time to list on the stock market are now not going to be able to list any time soon;
- do these venture capital firms and venture capitalists have exposures in investments elsewhere? money in the bank for instance?
what happens if twitter does collapse? what of the businesses that have been built on it? what about the contacts that you have been collaborating with purely on twitter? how do you find each other again? what would you do if you woke up tomorrow and couldn’t tweet?
what about facebook? what would you do if all the photos you loaded and did not have a backup elsewhere were gone?
there are some friends whom i don’t maintain any other contact details for except facebook, because why would you need to?
what if it is a bubble and what if it bursts?
