April 24, 2012

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Running with Giants

We can all agree that both recently acquired companies, Instagram and Posterous, were valued so highly due to their increasing popularity.  Both startups developed products that are considered hip and cool. For example, once Instagram released an Android version, the app’s popularity skyrocketed.

That being said, at the end of the day, Instagram is a photo application. While it could plug along and be a wildly successful competitor in its niche, it would have required more strategic breadth — via branching out into other forms of communication or media to steadily remain competitive.

Posterous, also, could have gained more momentum and acquired more characteristics of Twitter, but as both companies have announced, why not combine strengths, increase market share and exercise even greater power instead?

Ultimately, while these tech startup praise the supporters and end-users of their product, they are also entrepreneurs — which means that a profit motive and revenue model must exist. Let’s face it … everyone wants to be paid for his or her efforts.

So, what truly represents the “survival of the fittest?”

Is it observed in the massive size and power of a Goliath or is it best displayed in the seemingly insignificant stature of a David? In the tech startup world, it would appear that the “fittest” startups are those whose strength lies in their ability to bend, adapt, and conform to circumstances and changes that are inevitable and necessary.

However, the next time you underestimate the effectiveness of a smaller opponent, consider the mosquito and where he is located on the food chain.

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