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wikinvest

Page history last edited by PBworks 11 years, 11 months ago

 Google Gadget error 

 

Table of Contents:


 

Wikinvest:

www.wikinvest.com

 

Revenue model:

None.  No advertising (yet).  No subscription service (yet).  Maybe these features are coming (after they build the audience).  My bet is that they are instead hoping to develop the property (website like real estate) and sell it to a financial firm such as the Wall Street Journal at a valuation to repay the investment.  Assuming a 10x valuation on series A investment, that means the exit strategy of $25 million or more. 

 

How its funded?

 

Oct 01, 2007 - The company also announced today that it has raised $2.5 million in a Series A funding round led by venture capital firm DCM to help expand and accelerate development of the site.

 

Who contributes:

While on the surface, it appears as if a spontaneous community sprung up and started typing, that really isnt what happened.  Wikinvest took the venture capital money and used it to pay contributors.  Hoping that with a core of dedicated contributors building core content, that casual contributors would join the fun and take over the efforts (once the money runs out).

 

Concern:  Pump and Dump manipulation

 

The biggest concern with Wikinvest is that people will use it to try and spread false information or otherwise manipulate the market; this already bedevils financial discussion boards. Wikinvest.com tracks the IP address of every user and will ban offenders. But the perception that false information could still get through will be a problem as the fledgling site strives to gain user trust.

 

Likewise, errors on Wikipedia are rapidly corrected, but even the quickest amendment on Wikinvest.com might not be enough to stop day traders, expected to be the heaviest users, from getting burned.

 

Distibution / Partnerships:

 

Zecco Holdings, Inc., (http://www.zecco.com), a leading online investing community that offers access to free stock trading through its wholly owned subsidiary, Zecco Trading, Inc., and Wikinvest (http://www.wikinvest.com), the stock research wiki, today announced a partnership in which Wikinvest will deliver its quality investment research to Zecco.com. Through the partnership, Zecco's 120,000 members will have access to an unprecedented spectrum of free investment services including company research from Wikinvest when they visit the Zecco Quotes & Research pages.

 

Wikinvest Wire: Driving traffic & search ranking

 

One of the more clever innovations is the recent introduction of "Wikinvest Wire".  What I like about this innovation is the way in which it will drive more traffic back to Wikinvest wiki.

 

#1.  They get the top 100 financial blogs to add links back to wikinvest.  That will help with the Google rankings for search.  Thats because of the way in which google search bases its results on the # of referring sites that link back to your site, and the popularity of that site.  So, if a very popular site links back to you, then google knows you are important, and relavent, and your ranking on the google search will increase.  But, if you get 100 of the most popular blogs on that topic to ALL link back to you, then you should be seen as the most relavent, and your ranking on google search should shoot to the top.  Excellent idea.

 

#2.  Bloggers should love it because they get traffic from competitors sites, and also because they get an easy way to  link to a wiki page that is relavent for their readers. 

 

TechCrunch review of this service is here:  http://www.techcrunch.com/2008/10/09/as-the-markets-melt-wikinvest-wire-launches-to-offer-advice-from-financial-blogs/

 

"contextual recommendation system for the blogs invited to participate...Wikinvest is also in the process of syndicating the Wikinvest Wire to mainstream media sites, where links will appear on their stock pages...he contextual links will also appear on relevant pages on Wikinvest and other stock and financial sites. . In this sense, it is similar to contextual recommendation systems like Sphere, OutBrain, or BlogRovr, which all append recommended links at the end of blog posts or news articles using a variety of methods"

 

 

Co-Founders:

 Parker Conrad and Michael Sha, the founders, raised $2.5m (£1.2m, €1.8m) through venture capital backers.

 

 

Concerns with Wikinvest (revised);

 

With $2.5 million in funding (or more), and no advertising, Im not sure what their exit strategy is at this point for their VC investors.  With googles stock price falling like a rock (thus limiting industry consolidation and mergers), and a lack of IPO's in the foreseeable future, nor credit for LBO's, Im fearfult that the exit market may dry up.  Without an exit, the churn rate might be too high.  Time will tell, but I hope they make it.  It will be interesting to see what innovations they come up with next.

 

 

 

 

 

 

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