The only real technology company that has been around for 100 years is IBM. That is, if you do not count car manufacturers like Ford or utilities companies like General Electric. In its modern format, the Internet has been around for about 20 years and widely used for about 15. Evernote has been around since 2006 and has only gained popularity (now with 11 million users) in the last year or so.
So, what makes this company think that it can last for 100 years?
In his blog post, Libin quotes Sean Parker (as played by Justin Timberlake) in The Social Network: ""A million dollars isn't cool, you know what's cool? A billion dollars."
"Well, we don't think a billion dollars is all that cool either. You know what's really cool? Making a hundred year company," Libin wrote. "That's a pretty big deal; not many companies make it anywhere close, but we sort of signed up for the task when we started talking about earning your lifetime trust. You plan on living a long time, right?"
A Lot of Things Can Happen in 100 Years
There are so many things that could happen in 100 years. Global warming could melt the planet. Nuclear war could ... well, also melt the planet. Skynet could take over and let the machines rule the world. Do the machines have need of Evernote?
A hot new startup could make online note-taking easier, more powerful and more intuitive than Evernote or a new technology could make the need for digital archives obsolete.
In its short history, Evernote has shown that it can innovate and adapt rapidly to an ever-changing landscape. It recognized mobile as a big opportunity early and now has applications for almost every major platform. It recognized cloud storage and computing early and the necessity of making its service available anywhere and everywhere through the cloud as an essential practice with parallel thinking to what Google wants to do with its applications.
Unlike a lot of startups these days, Evernote uses its own servers to host and make transactions along its database. That means the company is not beholden to Amazon Web Services or Rackspace or any other data center. That is important, as building its own infrastructure will be key to sustaining longevity. The fact that the company now has a fat war chest and a profitable business model will keep Evernote around in the near-term future, even if the economy reaches Depression-era levels.
Evernote Just Might Have The Chops
Evernote has hired Ken Gullicksen (an Evernote board member and formerly of Capitola Ventures, BilltoMobile and Voltage Security, among others according to his LinkedIn profile) to lead its corporate development and acquisition strategy. Here is what Gullicksen had to say about Evernote in a press release.
"It's rare to see a company develop so many high quality products, rapidly grow its user base into the millions and become profitable in such a short period of time. This is a testament to Evernote's leadership and team," said Gullicksen. "With the right strategic decisions, Evernote is in a position to go from popular app to fundamental technology. I'm thrilled to come onboard and be a part of the company's next phase."
So far, Evernote has shown that it is managed well by forward thinking leaders with a cadre of talented developers churning out new features to the platform all the time. The company is already profitable and the new round of funding will be used to compensate long-term investors and employees and then for innovation and acquisition. So far, so good.
But a lot of things can happen in 100 years. Evernote is 1/20th of the way there. Can it continue to grow and innovate uninhibited for another 95 years?
This week saw one of the worst strings of trading sessions in nearly a year as investors have grown increasingly worried that Congress will be unable to set aside their differences and come to terms on some sort of debt deal to avoid a default. If a deal is not passed soon, major credit rating agencies have threatened to kick the U.S. out of the AAA club, which could be devastating for the global economy, as we would no longer be the go to safe haven economy. Gold saw new highs this week as the metal broke through the $1,600 per ounce mark and kept right on going. Meanwhile, oil suffered a rough week as crude is now below $96 per barrel. The ETF world saw a relatively slow week as far as launches are concerned, though a number of filings stuffed into the pipeline ensured that the industry would not be slowing down anytime soon.
Below, we outline the best ETF stories from around the web this week:
Who is Buying Gold and Silver? at iShares Blog:
One of the most fascinating metrics when it comes to investing is which kind of investor is buying which kind of securities, but this data is not always easy to find, as some funds trade hundreds of millions of shares every day. When it comes to precious metals ETFs, most of the purchases have been by major institutions rather than the individual investor. But new research from iShares shows that this trend may be reversing in favor of the individual. This article, from Kevin Feldman, explains the shift from institution to individual, and how it applies to two of their most popular products, SLV and IAU.
Social Media ETF Delusions at IndexUniverse:
As social media companies are skyrocketing in popularity, investors are chomping at the bit to get in at the ground level of some of these rapidly growing firms. This year has already seen LinkedIn and Pandora go public, with stellar first day performances, much to the delight of their investors. Now, Global X has filed for a Social Media ETF, in an effort to cash in on the investor excitement on this new space, but is it a realistic idea? With so many major social media companies still maintaining a private status the new product may be a bit ambitious. This article, by Ben McFadden, gives a current outlook on the social media world, and how this ETF might allocate its assets.
Biotech ETFs: Investing In The Fountain of Youth at ETF Daily News:
Aging is a natural part of life, but it is one that most people do their best to combat, as nobody wishes to feel or look their age when it comes to their elder years. Enter biotech firms; while they may not be tapping into the fountain of youth, they have been making strides to improve health in the elderly and are ensuring longer, more comfortable lives. In fact, by 2020, the world will have more than one billion people aged 60 and above, that’s nearly 14% of the globe’s population. This article, by Ron Rowland, outlines several ETFs to take advantage of this sector as well as the benefits that a biotech investment offers.
ETFs To Watch As Debt Ceiling Deadline Nears at ETF Database:
We are now just days away from the August 2nd deadline that is set for our nation to hit the debt ceiling, and many agree that if we do not take measures to allow for more spending, our economy will be in shambles. As Washington continues to publicly argue, it seems that little to no progress has been made, as this is a battle of stubbornness among Democrats and Republicans. Investors are anxiously awaiting the final decision, as no matter what happens, it will have a significant impact on our economy and its future. This article, by Michael Johnston, outlines a number of ETFs to watch amid the debates over our current debt ceiling crisis and those that could be impacted no matter what the final plan ends up being.
Disclosure: No positions at time of writing.
Click here to read the original article on ETFdb.com.
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