If you look at the numbers of a service like Dropbox (which I know is not a direct comparison, but is at least in an approximate neighbourhood), then you can see why an $1.8m investment in this sort of service would make sense - it can theoretically be useful to tens, if not hundreds, of millions of users.
Yes the odd terrible company gets funded, but if you cannot see where the value in a new service lies then it might be down to a number of other factors:
1. You are not being shown the complete product (i.e. you are seeing a v1 or even an MVP, but internally the company is demoing a killer app)
2. You are applying your own tastes/needs when evaluating a service. A famous ad exec once said (roughly): "We are not our target market". Don't assume a new product is being marketed toward you, try to think who it is really for and whether or not they might think differently.
3. Your ability to forecast user numbers / revenue for a new service might not be as good as you think.
Comments
If you look at the numbers of a service like Dropbox (which I know is not a direct comparison, but is at least in an approximate neighbourhood), then you can see why an $1.8m investment in this sort of service would make sense - it can theoretically be useful to tens, if not hundreds, of millions of users.
Yes the odd terrible company gets funded, but if you cannot see where the value in a new service lies then it might be down to a number of other factors:
1. You are not being shown the complete product (i.e. you are seeing a v1 or even an MVP, but internally the company is demoing a killer app)
2. You are applying your own tastes/needs when evaluating a service. A famous ad exec once said (roughly): "We are not our target market". Don't assume a new product is being marketed toward you, try to think who it is really for and whether or not they might think differently.
3. Your ability to forecast user numbers / revenue for a new service might not be as good as you think.