VSCO raises $40 million in funding(bits.blogs.nytimes.com)

almost 6 years ago from David McKinney, iOS design & dev

  • Tor Løvskogen BollingmoTor Løvskogen Bollingmo, almost 6 years ago

    I think so, that's why they bought Instagram and WhatsApp. They are buying social elements.

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    • Aubrey JohnsonAubrey Johnson, almost 6 years ago

      Agree, so they wouldn't be buying more social networks that aren't even really social networks.

      If you look at Facebook's acquisition history, they follow a path of acquiring startups that

      A. are a threat to their dominance / session times on mobile thus could upset their advertising revenue which will be deeply dependent on mobile as the PC / desktop era dies (keep in mind entire countries are skipping PC / Laptop era and fast forwarding directly to mobile): So companies like WhatsApp, Instagram, FriendFeed, etc

      B. products or services that could enhance the Facebook experience significantly where they have no simple path to incumbancy: Octazen, Face.com, Divvyshot, Oculus, Moves, Jobbigo

      and C. advertising, monetization, and talent: Sofa, Daytum (they wanted Felton), Pushpop (they wanted Matas) Parse (huge cash cow), Atlas, Karma, etc

      They've spent $20B+ in two years on acquiring successful social networks, if anything, they'll acquire Secret. So, they wouldn't buy VSCO because it's a social network. They'd buy VSCO because it could enhance the experience where they have no simple incumbancy ie: ultra-premium photo enhancement.

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