| When Venture Capitalists invest in your web2.0 site how do you make money or get it in your pocket to cash in.

When Venture Capitalists invest in your web2.0 site how do you make money or get it in your pocket to cash in.

Chris C asked:


How do venture capitalist give you money out of the Web 2.0 website you create after it is completed. Do you really get rich when VCs invest in your website or do you make a small amount.

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Comments

2 Responses to “When Venture Capitalists invest in your web2.0 site how do you make money or get it in your pocket to cash in.”

  1. Colinc on June 13th, 2009 1:06 am

    You will only get investments when your site has proved it is capable of earning millions.

  2. vox_atrophia on June 14th, 2009 11:32 pm

    I’m no expert, but it seems to work like this.

    Step 1. Create a start up with VC funding.
    Step 2. ???
    Step 3. Profit

    As of now, the only Step 2 is getting bought by Google, Microsoft, Yahoo, etc. Ads will never make you rich, especially when bandwidth eats up so much cost.

    If you can find another Step 2, I’m sure sites like FaceBook, Digg, etc. would love to hear it.