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In an ecosystem, each participant acts according to its own imperatives, but these selfish actions have an aggregate effect. In an ecosystem, each participant acts according to its own imperatives, but these selfish actions have an aggregate effect. Some ecosystems are stable, others malign, and others grow and prosper.
It’s entirely possible for the startup to be a massive success without having large aggregate numbers, because the startup has succeeded in finding a passionate, but small, early adopter base that has tremendous per-customer behavior. Even that early, it became clear that 4% was not an achievable goal.
They had previously all worked together at a very successful company in the “telecoms meets Internet&# space, CallWave, which IPO’d 5 years ago or so. This form of advertising is know at CPA (cost per action). initially captured the Internet portal revenues by aggregating eyeballs.
GameFly filed in 2010 and remains in registration, though 2011 has seen a positive start for VC-backed IPOs with 14 in Q1 2011. Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. Distribution revenue is CPC and CPA. .
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