$20M buy, $8B public valuation
IAC acquired Vimeo for $20 million in 2006 and held it ~15 years before taking it public at an $8 billion valuation.
“They bought this business for $20 million. It's now worth $8 billion. Is that crazy?”
Shaan's rule: with a true megatrend (mobile, social, video, and today AI and crypto), you're early even when you feel late, and even the niche players win big. Vimeo winning just the high-quality creative niche of online video still produced an $8 billion company.
“And there's another version of that, which is even when you're niche, you're big with a megatrend.”
Steal thisPick a megatrend, then go after a defensible niche inside it rather than fighting the category leader head-on.