There seems to be an explosion of [tech] companies doing pretty much the same thing these days. I don’t mean the Groupon vs LivingSocial type of healthy competition, I mean the proliferation of nearly identical “companies” doing the “same” thing. I’m not the first person to notice this, much less talk about it or even write about it.
Today I read Jotly.co has turned into a real product, by real product I mean the founder’s claim they never intended to create the app that was the feature of their parody video from two months ago. Regardless, what I found very interesting and somewhat surprising is Jotly was created by Firespotter, which is a competitor to Milk which has a product which competes with Jotly called Oink. Confused yet? Oh, and both companies are funded by GoogleVentures. Yeah, okay.
My point to all of this – clearly we are going through period of rapid-funding-land-grabbing craziness which at some point will turn into contraction of epic proportions, meaning milk and Firespotter will become one, Oink and Jotly will merge and the cycle we saw in the early 2000′s will start again. If you’re an advertising platform living off VC funded companies you’re fucked. If you’re a 2nd string developer – you’re double fucked and if you’re an also ran, better get out now because there is a good chance in 2012 it will all start to go south. Don’t get me wrong, ultimately this will be good for the survivors, the customers and innovation in general, but just because it’s easier to enter the race doesn’t mean you’re more likely to finish today than before.