Sunday, July 26, 2015

Why Homejoy closed down - ran out of money - CrunchWeek: Tech Makes Money, Reddit’s Implosion Continues, And Your Favorite Startup Is Doomed | TechCrunch

CrunchWeek: Tech Makes Money, Reddit’s Implosion Continues, And Your Favorite Startup Is Doomed | TechCrunch



wasn't making enough money on $19 hour homecleaning.



venture model:

give it away for free; rely on venture money (lots of it); think about monetization later (but don't run out of vc money first.



(also closed Circa - everybody liked, great design...



The question is can you get growth (where is the growth) and can you get scale?



Also, the issue of the "sharing economy" - convenience and saving us from doing something by having others do it for us - maybe too many companies trying to target this market.



Also, in terms of sharing there is the issue of "that would be nice" but "I don't need it!"



Homejoy also had the risk of lawsuits over the independent contractor status of its cleaning people (a risk that needs to be addresses - and hasn't - and is a grey area of the law and not something vcs want to be exposed to; therefore, no more money.




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