The internet has completely changed the way startups operate. One of the major changes observed has been the almost negligible amount of audit that startups are required before putting themselves up for IPOs. An example of this negligence is Twitter’s IPO. Twitter’s customer base was heavily populated by bots or robots. Companies didn’t initially realize and Twitter gained traction through a successful IPO. Thus its claim to be a major platform for digital marketing came unstuck when post its IPO, the fraud was detected and the value of its shares came down. Facebook on the other hand has gained greater credibility due to the authenticity of its claims. Uber is another startup that will face challenges to justify its massive valuation in the face of competition from the likes of Lyft, Curb and Juno.

Source:https://www.forbes.com/sites/quora/2017/05/05/how-the-internet-is-changing-the-world-of-startups/#57e97de443fc

Uploaded Date: 16th May 2017