I'm surprised at the negativity around this article. Chris Dixon is a pretty successful investor, and well connected in the valley. All he's saying is you need a lot more users now if you make money off of ads and if you want to raise a large series A.
Indeed, something I thought too. If they know they can make a higher minimum requirement, or that those exist out there, I am sure they would prefer putting their investment money in those areas. They are potentially bigger markets, and potentially a more successful company. At 10 million users though, even just throwing up some basic ads you can likely make enough money to cover your burn rate..
Not really. Investors need deal flow. If he thought 1MM users was enough he'd be broadcasting that so that services with 1MM users approached him with a pitch. The fact he says 10MM means 1-9MM user startups will skip him. Not a successful VC recipe if you don't believe what you're saying.
