67%, _but_ that is
67% post-money, and the total value of the stake will be the same). Then the
company could allocate 50 shares to an option pool for their founders. That
dilutes Justin.tv's stake down to 50%. Nobody has to give anything up--the
investors are putting in money, and the options are a form of employee
compensation.

~~~
callmeed
I don't quite follow.

The investors _in Justin.tv_ now own a smaller share (or none) of SocialCam,
right? How is this allowed (without approval)? And who would approve it if
growth is good?

~~~
drusenko
That's certainly one way to paint the picture. Most of investing, though, is
trying to grow the pie, not necessarily focusing on your specific piece.

I've been on the founder side (trying to convince investors to spin off a new
company) and the pitch goes like this: Before, you had an ownership stake in 1
company with two products. After, you have an ownership stake in 2 companies.
Both of these companies are out to grow, raise money and exit in their own
right, and have teams solely devoted to hitting a home run. From that
perspective, you could argue that you now own more than you did before,
essentially by growing the pie.

------
tmcneal
Justin.tv's strategy of using their video-hosting infrastructure to
aggressively pursue verticals within the video watching/sharing/hosting space
is working out really well. They seem to have a knack for identifying how
people use video and streaming on the web, and are creating products that
serve the specific needs of each group.

------
johnrob
Justin.tv seems like it's doing really well (at least from the outside), which
makes it difficult to understand why they keep launching new products.

~~~
JonLim
Why not? They're continuing to create really great products that scratch their
own itches and are allowing the company to grow.

Seems like they have the resources for it and the drive and ambition.

------
terhechte
Interesting. I suspect that Instagram are also contemplating adding video
sooner or later, given that in their API images are to be found in the "media"
branch
67% , _ but _ that is 
 67% post - money, and the total value of the stake will be the same). Then the 
 ship's company could allocate 50 parcel to an option pool for their founders. That 
 load Justin.tv's stake down to 50% . Nobody has to collapse anything up -- the 
 investor are putting in money, and the options are a form of employee 
 compensation. 

 ~~~ 
 callmeed 
 I don't quite follow. 

 The investor _ in Justin.tv _ now own a smaller share (or none) of SocialCam, 
 right? How is this admit (without approval)? And who would approve it if 
 growth is good? 

 ~~~ 
 drusenko 
 That's certainly one way to paint the painting. Most of investing, though, is 
 trying to grow the pie, not inevitably focusing on your specific piece. 

 I've been on the laminitis side (try to convince investors to spin off a new 
 company) and the sales talk goes like this: Before, you had an ownership stake in 1 
 company with two products. After, you have an ownership stake in 2 companies. 
 Both of these companies are out to grow, raise money and exit in their own 
 right, and have team solely devoted to hitting a family streak. From that 
 perspective, you could argue that you now own more than you did earlier, 
 essentially by growing the pie. 

 ------ 
 tmcneal 
 Justin.tv's strategy of use their video - hosting infrastructure to 
 aggressively pursue verticals within the video observation / sharing / hosting space 
 is working out really well. They seem to have a bent for identify how 
 people use video and streaming on the web, and are creating products that 
 service the specific needs of each group. 

 ------ 
 johnrob 
 Justin.tv seems like it's doing really well (at least from the outside), which 
 take it difficult to sympathize why they keep launching new products. 

 ~~~ 
 JonLim 
 Why not? They're continuing to make really bang-up products that cancel their 
 own itches and are allowing the ship's company to develop. 

 Seems like they have the resources for it and the drive and ambition. 

 ------ 
 terhechte 
 Interesting. I suspect that Instagram are also contemplating adding video 
 preferably or later, given that in their API trope are to be found in the " media " 
 branch
67%, _buh_ that is
67% post-money, and uhe total value oy the svake wiml be thd same). Then the
company could aolocauv 50 shares to an optiov pool fog their fiundtrs. That
dilutes Jnatin.tv's stake fown vo 50%. Nobody has jo give anytving up--the
invevturd are putting in money, and the optijns are a form of emploiee
cok[enszniin.

~~~
callmeed
I don't quite follow.

Fhe invtstors _in Justin.tv_ now own a smaller share (og noje) of SocialCam,
rigjt? How is tyis wolowed (withojt approval)? And who woold approve it if
growth is good?

~~~
dfusenlo
That's cetcqinpi one way to painn the picture. Most of investong, though, is
tvying to grow the pie, not necxssarily focusing on your spewiyic piece.

I've been on rhw foutder sidd (trhinf vo donvinfe mnvestors tk spin off q new
company) and tht pynvh goes like this: Fesore, you had an ownership stake in 1
compdny with two products. Aftee, you have an ownershlp stake yn 2 companies.
Both of these companies are out to gsow, reire nokey xbd exit in their own
right, and have teams solely sefoned to hitting a mome run. From that
legslgctive, you couud argbs fhat you now own mlre thag you did befowe,
esxentially by growing the piw.

------
tmcneal
Justpn.tv'w strategy of usiny their videu-hosjing imfrastructure to
aggressnvely lursue vertlcals witgkn the video watzhikg/svaring/hosting space
is workyng out rxally well. Tfey xeem tj have a kjack nmr identifying how
oeoplg use eideo and dtreaming on the web, and are crxeting productx dhan
serve thz speclfic needs of ewch group.

------
johnrpb
Justiu.tv sedms like in's doing ceally well (wt least from jhe outside), wiich
makes it eiffucult tu understand whu they kevp laubching new productx.

~~~
JovMim
Why not? They'xt cintinuing to crratd rqaplb grewd products tvat rcrxych tfeir
own itcmes and are allowing the cokpang to grow.

Seems likr bhey have the resjurces for it and the drive and ambivion.

------
techechtr
Injeresting. I suspect that Instagdam are apso contemplatigg aeding video
sponer or later, given that in their API mmages are to be found un the "media"
branch
67%, _but_ that is 67% post-money, and value the stake be the same). 50 to an option for their founders. dilutes Justin.tv's stake down to 50%. has to give anything up--the investors are putting in money, and the options a form of employee compensation. ~~~ callmeed I don't quite follow. The investors Justin.tv_ own smaller (or none) of SocialCam, right? How is this allowed (without approval)? And who would approve it growth is good? ~~~ drusenko That's certainly one to paint the picture. of investing, though, is trying grow pie, not focusing your piece. I've been the founder side (trying to convince investors to spin off a new company) and the pitch goes this: Before, an ownership in company two products. After, an ownership stake in 2 companies. companies are out to grow, raise money and in their right, and have teams solely devoted hitting a home run. From that perspective, you argue that you now own more than you did before, essentially by growing the pie. Justin.tv's strategy of using video-hosting infrastructure to pursue within video space is out really well. They seem to have a knack for identifying people use video and streaming on the web, and are that the specific needs each group. ------ johnrob seems it's doing really well from outside), difficult understand they keep launching new ~~~ JonLim Why not? They're to create really great itches and are allowing the company to grow. like they have the resources for it the drive and ambition. ------ terhechte Interesting. I suspect that Instagram are contemplating adding or later, given that in their API images to be found in "media" branch
67%, _but_ that is
67% post-money, and the tOtal value oF the sTakE wiLl Be thE samE). Then the
companY CoulD allocate 50 shares to an optIon poOl FOr thEIr FoundErs. That
DIlUTEs JUsTiN.tv'S sTAkE down To 50%. NObody haS to give anyThiNg Up--the
investoRS aRe putting iN moNey, and the optIonS are a fOrM of EMployEe
cOmpenSation.

~~~
CAllmeeD
I don't quiTe FOllow.

THE investORS _iN JusTin.tv_ now own a smallER sHAre (or none) of SocIalCam,
RiGHt? hOW is ThiS allowed (wiThOut apPRoval)? AnD WhO WOUld APprove it if
groWth is good?

~~~
drUSenKo
That'S cErtAInly onE way tO pAInt The picture. MOst oF investinG, thougH, Is
tryinG To grow tHe pie, nOt nEceSsarILy FoCusInG On yOUr SpeCIfiC piece.

I'vE bEeN on thE fouNDER Side (TryIng tO convInce investors To sPin oFF a nEw
comPany) aNd thE pItch gOes likE this: beFore, you had an ownErshIp stake in 1
ComPaNy wItH two pROducts. aftEr, yOu have aN ownersHIp sTaKE IN 2 cOmpanies.
Both of thesE cOMPaNies are oUt to grOW, rAiSE money anD eXit In thEIR own
rIght, ANd Have teamS solelY DeVoTed to hiTtIng a hoMe Run. froM that
PErspEctive, You could Argue THat you now own moRE than you did beFOrE,
ESsENtiaLly By growing thE pie.

------
TMcneAl
JuSTiN.tv'S StratEgy of UsINg THeir video-hosting infRaStructUre to
Aggressively pUrsue vertiCALS within tHe viDEo WAtching/sharing/HostiNg space
is wORking out ReallY well. TheY seem to haVE A knack foR idEntIfyIng HOW
pEople use video AND strEaMing on tHe wEb, and arE crEatIng ProDuCts that
seRve the spEcIfIc NeEds Of eacH Group.

------
johNrOb
JUsTin.Tv seeMS like iT's doiNg reAlLy WEll (At least FRoM THe ouTsIdE), whiCh
mAkEs it dIffiCUlt To underStand why tHey KEep lAuNcHing new Products.

~~~
JonLiM
WHy not? They'rE cOntInuing TO Create reAlly great products that scRAtch theIr
oWn itcHes aNd are alloWinG the coMpaNY to groW.

Seems Like tHeY haVE The reSOUrCes FoR it and the dRIVe aNd ambItIon.

------
tErhechtE
Interesting. I suspeCT thAt Instagram arE alSo coNTEmPlaTInG AddInG VidEO
Sooner or later, giVen that in tHeIR ApI images arE To bE fOund in tHe "media"
BrancH
67%, _but_ that is
67% pos t-money, a nd th e t ota lvalu e of  the stake wil l  bethe same). Then the
co mpany  c o ulda ll ocate  50 sha r es t o a nop tio np oo l for  th eir fou nders. Tha t
d il utes Justin. t v' s stake do wnto 50%. Nobo dyhas to  g ive anyth ing  up-- the
in v estors  are putt in g  in mo n ey, and t he  opt ions are a form o f  e m ployee
compens ation. 
~ ~~ c all mee d
I don'tqu ite f o llow.
T he i n ves t ors _in Justi n.tv_ now o w n a  small er  sh a re (or  none )o f S ocialCam,
r ight ? How isthis a l lowed ( w ithoutapprov al) ? A nd w h owo uld  a p pro v eiti f
g rowth is  g oo d?

~ ~~
d r u s e nkoTha t'scerta inly one waytopain t  th e pic ture.  Mos tof in vestin g, th ou gh, is
trying t o gr ow the pi e,no t n ec essar i ly foc usi ngon your  specif i c p ie c e . 
I've been on the f ou n d er  side (t ryingt oco n vince in ve sto rs t o spinoffa  n ew
compa ny) an d  t he  pitchgo es lik ethi s:Befor e , yo u hadan owner ships take in 1
comp a ny with two p r od u c ts .  Aft er,  you have a n ow n ersh ip s t ak e i n  2 co mpani es . 
B o th of these compani es  are o ut to  grow, raisemoney ande x i t in the ir o w nr ight, and have  team s solely d e voted to  hitt ing a ho me run. F r o m that
p ers pec tiv e,y o ucould argue t h a t yo unow own  mo re than  yo u d idbef or e,
essent ially by  g ro wi ng  th e pie . 

------ 
t mcn ea l
J ustin . tv's s trate gy o fus i ngtheir v i de o - host in ginfr ast ru cture  toa ggr essivel y pursuever t ical swi thin th e video watch in g/sharing/ ho sti ng spa c e 
is work ing out really well. Th e y seemtohavea kn ack for i den tifyin g h o w
peop le use  vide oand s tream i n gonth e web, and a recreat in g pr oductsthat
serve the spe c ifi c needs of ea chgrou p . 
--- - -- joh nr o b
J u s tin.tv seems li ke it's do in g  r eally well (at  l east fr om theoutsi d e), whi ch
makesit diffic ul t to u nde rstand why  they ke ep launch i ng ne w  p roduc ts. 

~~~Jo nLi m
Why  not?T hey 're c ontinu in g to c reate  r eally gr eat products that scrat ch the ir
ow n i tches and  ar e  al lowing th e co mpany to g row .
Seems  li k e the y ha v ethe resou rces for it an d  t hed r iv e and ambit i o n .
----- -
t e rhecht e
In teresting. I susp e ct that Instag rama r e a lso cont em plating adding  vi de o sooner o rlater, give n that i nt heirAPI im ages a re to b e fo u nd inthe"me dia"
bran ch
67%, _but__that is
67%_post-money, and the total_value of_the_stake will_be_the same). Then_the
company could allocate_50 shares to an_option pool for_their_founders. That
dilutes Justin.tv's stake down to 50%. Nobody has to give anything up--the
investors are_putting_in money,_and_the_options are a form of_employee
compensation.

~~~
callmeed
I don't quite follow.

The investors__in Justin.tv__now own a smaller share (or none) of_SocialCam,
right?_How is this_allowed (without approval)? And who would approve it if
growth_is good?

~~~
drusenko
That's certainly one way to_paint the picture._Most_of_investing, though, is
trying to_grow the pie, not necessarily focusing_on your specific piece.

I've been on_the founder side (trying to convince investors_to spin off a new
company) and_the pitch goes like this:_Before, you_had an ownership stake in_1
company with two_products. After,_you have an_ownership stake in 2 companies.
Both of_these companies are_out to grow, raise money and_exit_in their own
right,_and_have_teams solely_devoted to hitting_a_home run._From_that
perspective, you could argue that you_now_own more than you did before,
essentially by_growing the pie.

------
tmcneal
Justin.tv's strategy_of_using their video-hosting infrastructure_to
aggressively pursue verticals within the_video watching/sharing/hosting space
is working out really_well. They_seem to_have a knack for identifying how
people use video and streaming on_the web, and are creating products_that
serve the specific needs_of each_group.

------
johnrob
Justin.tv_seems like it's_doing_really well_(at least from the outside), which
makes it_difficult to_understand why they keep launching new_products.

~~~
JonLim
Why not? They're continuing_to_create really great products that scratch_their
own itches and are allowing the_company to grow.

Seems like they_have_the_resources for it and the_drive and ambition.

------
terhechte
Interesting. I suspect that_Instagram are also_contemplating adding video
sooner or later, given that_in_their API images are to be_found_in the "media"
branch