Good morning. Term Sheet will be off Monday for Memorial Day. Which means it’s the Friday before a long weekend. Which means it’s time for some feedback. Strap in!
DS writes: If the Etsy founders held on to a larger stake in the company, Etsy’s foray into B Corp. may have turned out different. The Etsy IPO had one of lowest insider ownerships vs. its tech peers.
(Term Sheet note: Indeed, Etsy CEO Chad Dickerson, who was not a founder, owned 2.1% of the company when it went public. Etsy’s prior CEO, founder Rob Kalin, wasn’t even mentioned on the company’s S-1 filing.)
Todd writes: The moral of the story is, don’t put the pay-to-play clause in the documents originally! Of course, it usually doesn’t make any difference when the company gets to that point. But in better times, it keeps lower tier investors from not reneging on their preemptive rights by more reputable investors who continue to support the company. Of course, if there’s no provision, investors could agree to do it to help out…but couldn’t be forced.
(Term Sheet note: There’s a lot more on pay-to-play from Brad Feld’s archives here.)
On Naveen Jain, founder of Moon Express, who said, “If I could rephrase John F. Kennedy, it would sound like, ‘We chose to go to the moon, not because it’s easy, but because it’s a good business.”:
JS writes: Honestly, this is the worst quote I’ve heard in a long time. It makes me sad for humanity.
On whether Snap is Facebook or Twitter (and my assertion that the question is a pointless one to debate): Many of you had more creative comparisons…
Gilbert writes: It’s neither — I think it’ll be closer to LiveJournal. Snap will never reach the audience Facebook does with its confusing UI and (now slightly less) ephemeral messaging construct. Twitter is, although perhaps a bad business, a social good/quasi-utility. LiveJournal was an early-mover in the blog category, built a small but indefensible moat based on users, and was eventually overtaken by better-funded, better-architected rivals like Blogger and WordPress. That’s my best guess for Snap (with Instagram currently leading the pack to play the role of spoiler).
Sara writes: Snap is more like WhatsApp and Instagram in one. To stay alive, Snap will slowly edge towards Instagram, enhancing user profiles, providing a few more ‘pervasive’ / permanent tools and content so that there’s a real social media presence vs. something which disappears in 24 hours.
Joseph writes: Snap will be a Twitter. Snapchat’s usage is just about sharing stories and pictures with your intimate friends and maybe reading some articles, and their monetization strategy has not been anything novel.
Arif writes: Qqqqqq Qq Qqqqqqqqqqqqqqqqqqqqq
(Yes, I get lots of butt-emails and accidental cc’s.)
Luke writes: When we are mired in our next recession, the question will be asked, ‘When should we have known better?’ The day we should have known better was the day that anyone thought a company which will never make a cent [of profit] is worth $20+ billion.
Michael writes: Snap is like neither. They made it clear on page one of their S-1: They’re a camera company. Like GoPro. Or Cannon. Or Nikon. Or Minolta…
Mark writes: Twitter. There’s only so much innovation one can bring to the industry segment.
Brian writes: Snap feels more like MySpace+LaserDisks than Facebook or Twitter.
Jim writes: My guess is that the “Discover” tab is what’s going to drive that user growth. Each of us has only so many friends… and those friends only have so much skill in terms of content creation. Snap’s taken an interesting approach offering guaranteed licenses for content they want, but that is very limiting. Further, they’ve invested almost no effort in making it easier for the content creators to get that content in to Snapchat. Those types of workflow-and-measurement problems aren’t sexy, but have a big impact on what you end up seeing.
DN writes: Snap is Twitter as long as Evan [Spiegel] is CEO because he’s fundamentally more a ‘feeler’ than a ‘thinker’. Evan has far more in common with the ‘feelers’ Ev and Jack (and Jobs). Zuckerberg the ‘thinker’ is more like the second coming of Bill Gates.
Evan (no, not that one) writes: Snap is making mistakes on the same axis as Twitter but in the opposite direction. Twitter tried to copy Facebook too hard without recognizing what made its product special. Snapchat is abjectly refusing to copy Facebook even though it has a lot to learn.
One other thing they have in common with Twitter: Facebook figured…