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Home / Technology / Who benefits from Facebook's failures? – TechCrunch

Who benefits from Facebook's failures? – TechCrunch



If Facebook loses who will win?

That's a question for startups worth thinking about Facebook's current stock price cut. The company's valuation has fallen by around $ 60 billion since the start of the Cambridge Analytica scandal this month, and the # DeleteFacebook campaign has gained momentum.

That's a steep decline, which equates to about 1

2 percent of the company's market valuation alone seems to be suffering. As stocks fell in recent weeks, stocks of other high-tech and online media companies were much flatter.

Where did the money go? It's probably a question of perspective. For a Facebook shareholder, this rating is simply gone. That's the case until the executives 'apologies resonate and users' desire to click and scroll overcomes their privacy concerns.

An alternative view is that the rating did not exactly disappear. Investors may still believe that the broad social media space is just as valuable as it was a few weeks ago. It's just that less of this cake should be the exclusive domain of Facebook.

If you take that second term, then the opportunities for those who could benefit from Facebook's efforts will be interesting. Of course, there are public-sector companies, such as Snap or Twitter, that may receive traffic as the # DeleteFacebook movement gains momentum, without expanding into other major brands. But in the private markets, we see most potential beneficiaries of Facebook's problems.

In an effort to find some names, we've searched Crunchbase for social media and related businesses. The resulting list includes companies that have made good rounds in recent years and may see profits if people limit their Facebook usage or own their shares.

Of course, people use Facebook for various things (posting photos, getting messages, chatting with friends, and so on), so we'll cover a few categories of potential beneficiaries of a Facebook backlash.

Messaging

Facebook has a significant messaging presence, but it was not declared a winner. Alternatives like Snap, LINE, WeChat and simple old text messaging are also very popular. That's what's bad for Messenger and Facebook-owned WhatsApp is probably good for competitors.

And when more people want to use less of their news on Facebook, it helps a number of private companies to take their place.

Crunchbase has identified six high-finance messaging apps that could fulfill the bill (see list). Collectively, they have raised more than $ 2 billion – if you include the $ 850 million offer from Telegram.

These private messaging startups are increasingly focusing on privacy and security, including Wickr, the encrypted messaging tool that has raised more than $ 70 million and Silent Circle, another provider of encrypted communications, who has raised $ 130 million [19659014] Popular places to surf the screen

People who retire on Facebook may still want to spend hours a day posting on video. So it's likely that they'll start to stare at something else that's rich in content, easy to navigate, and addictive.

Fortunately, there are many enterprise-backed companies that fit this description. Many of them are pretty mature at this point, including Pinterest for image collections, Reddit for post and comment threads, and Quora for questions and answers (see list).

Granted, these do not replace the posts that keep you informed about life events by family and friends. But they could replace newsfeeds, meme shares and other non-personal contributions.

Niche content

A decline in Facebook usage could lead to an increase in traffic for a variety of niche content and discussion platforms sports, celebrities, social issues and other topics.

Crunchbase News identified at least half a dozen who have raised funds in recent quarters, which is just a selection of the entire universe. Selected start-ups range from The Players' Tribune, which includes first-hand accounts for top athletes, to media that finds articles with a wide audience.

Niche sites also offer a more customized forum for celebrities and experts and subject matter experts to engage directly with fans and supporters.

Community and Engagement

People with common interests do not have to share them on Facebook. There are other places that can offer more customized content and social engagement.

In recent years, we've seen social and activity-focused social apps become more prevalent. Perhaps the most prominent is Nextdoor, which connects neighbors to everything from garage sales to crime reports. We also see some upstarts focused on creating social networks for stakeholders. These include Mighty Networks and Amino Apps.

While some would call it a track, we added WeWork, the youngest acquirer of Meetup, and The Guild, two companies that build social networks in the physical world. These companies encourage people to network and connect with other people (even if they are sitting in one room while others are staring at a screen).

Look at where the money goes

Facebook's final confusion is too young to expect a visible impact in startup funding. But it will be interesting to see in the coming months if potential rivals in the above categories attract much more cash and attract more users.

If there is demand, there is certainly no shortage of supply on the investor side. The IPO window is wide open and venture capitalists are sitting on record stacks of dry powder. It has also not gone unnoticed that social media offerings such as Facebook, LinkedIn and Snap have generated the largest exit sum in a VC-funded sector.

Also, those have argued that it is too late for newcomers to have a history of having proven wrong. That's what you said in 2005 about would-be competitors of MySpace, not long before Facebook made it big.


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