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How do sites like myspace.com get funding to actually operate? (Before it was 'sold')

2006-08-02 12:11:10 · 2 answers · asked by AKAdemiks 3 in Computers & Internet Programming & Design

2 answers

Well adds are a strong revenue stream but typically when you are starting out (if you are business savvy) you could initially approach Venture Capitalists for funding and they will typically take 10-40% of the company to provide you with funds and once your idea takes off they sell out their shares and make a killing or get killed as in the DOTCOM bust!

2006-08-02 17:06:46 · answer #1 · answered by Anonymous · 0 0

ads, ads and ads! Thats why free sites like myspace are so ad-ridden!

2006-08-02 12:14:56 · answer #2 · answered by jkomets 4 · 0 0

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