Ultra Light Startups™

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HotOrNot is a photo rating website founded in 2000 by two Berkley undergrads.  It was acquired by Avid Life Media in February 2008 for a reported $20 million.
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This article by Dries Buytaert (founder of Drupal and Acquia) discusses the economics of the freemium business model.  He quotes Fred Wilson’s definition of “freemium”:
“Give your service away for free, possibly ad supported but maybe not, acquire a lot of customers very efficiently through word of mouth, referral networks, organic search marketing, etc., then offer [...]

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