Mike Maples on Investing in Airbnb and the Evolution of Social Networking

Mike Maples, Managing Partner of Floodgate, shares his insights on investing in Airbnb and the growth of social networking platforms. Despite passing on an initial opportunity to invest in Airbnb, Maples now sees the company as having "thunder lizard potential" and believes it can achieve a defensible advantage through network effects. He also discusses his views on Google Plus, Twitter, and Facebook, and shares his thoughts on how the social networking landscape is evolving.

Key Takeaways:

• Mike Maples passed on an initial opportunity to invest in Airbnb but now sees the company as having "thunder lizard potential" due to its ability to achieve a defensible advantage through network effects.
• Maples believes that Airbnb can become a market leader and achieve global critical mass, despite its initial struggles.
• He is bullish on Airbnb's future prospects and thinks it can have a very defensible advantage in the market.
• Maples also shares his views on Google Plus, Twitter, and Facebook, and believes that Facebook has a strong value proposition and is firmly entrenched in the social networking market.
• He thinks that Twitter has its own unique value proposition and does not see Google Plus as a significant threat to its territory.
• Maples emphasizes that the venture business is about taking risks and investing in companies that have the potential to become the next big thing.

Statistics:

• Airbnb raised $112 million in funding from DST Global, General Catalyst, and Andreessen Horowitz.
• Maples believes that marketplaces have natural monopoly characteristics and can achieve a defensible advantage through network effects.
• Facebook has an incredible user base and value proposition, and Maples thinks it will be a long-term valuable company.
• Twitter has its own unique value proposition and is not threatened by Google Plus.

Sources:

• Bloomberg TV (July 25, 2011)
• Floodgate
• DST Global
• General Catalyst
• Andreessen Horowitz
• Twitter
• Facebook
• Google Plus