“The key finding of the survey is that these managers can be profitable at a small size. One third of managers surveyed said they were profitable with less than USD50 million. We therefore dispute the claim that you need USD200 million or more to break even. We think there is tight evidence that you can do it at a lower AUM number,” asserts Capstick.
Breaking it down by strategy, the survey found that global macro funds need the most assets to break even: USD132 million, followed by event-driven (USD108 million) and multi-strategy funds (USD98 million).
A bit like the problem dating apps have, the more successful you are, the more churn you create.
Once a group of friends come together they'll get a house share of their own instead of sharing with strangers. Probably be cheaper too. Have they modeled for high churn rates in their already thin margins?
A premium service leaves your very vulnerable to the tide going out on disposable income. The co-living space will be left with higher long term leases they can no longer service. I really want to figure out a way to short services like WeWork at a 16b valuation.
This is a great partnership and I can't wait to see what comes next.
I've watched and enjoyed reading the Buffer story since the early days. In fact it probably played a small part in my path towards quitting work last summer and starting my own thing.
I'm considering doing an 'Open blog' for our enterprise start-up http://www.fundrecs.com like the guys did with Buffer.
Trying to weigh up whether it would limit us or enable us to do more. My gut is saying go for it but my co-founders aren't convinced.
The model that seems to be working for social collaboration software and what Trello has announced, is the majority of user features are free while admin/control features fall into the paid version. Yammer's business model is not too different with admin/control features at the core of the paid version.
Organizations are willing to pay for control while users are less willing to pay for features.
If you can get widespread adoption by free users there's increased pressure on Management to signup for the control features. Someone else coined this as "Enterprise sales by the backdoor".
We launched http://taskmessenger.com in January. It's a shared to-do list for personal and team use. Sign up is free and if you need any features or help getting started drop me a mail at [email protected] (I'm a co-founder)
We have a search function for keeping track of tasks, an activity feed showing tasks completed while we also track stats such as tasks shared, picked up and completed.