Draons Den: Guy wants to compete with PayPal - Gets flamed badly by O'Leary

mituozo said:
That's not what they're saying, what they're saying is that he doesn't have a value proposition given Paypal's dominance.
Click to expand...

That's what the rest of the investors said. But O'Leary specifically focused on Paypal being unbeatable.


mituozo said:
Why would someone use his service instead of Paypal? It does exactly the same thing, except probably has a tiny percentage of the features, given the investment to date.

Stripe and Square are totally different, and innovative. All he was doing was trying to remove their 30 cent fee. Something which only really affects small transactions in any noticeable way. I'm trying to even remember the last time I used paypal to send someone less than $5-10...

He also made ridiculous claims that immediately destroy credibility, like saying he's built the most secure payment processor on the net with his investment to date, which was sub 6, let alone 7 figures.

They summed it up perfectly, he's not the guy that's going to disrupt paypal.
Click to expand...

Just to clarify - no way is this guy going to beat Paypal. That wasn't my assertion at all. I was simply pointing out that O'Leary spent a chunk of his criticism focusing on the idea of beating Paypal being preposterous (hence the examples of stripe and square), rather than the idea of this particular guy beating Paypal.

The other investors were spot on - this is not the guy for the job. But O'Leary was more preoccupied with smelling the farts coming out of his mouth than focusing on this particular founder.
 


H413DLD.jpg
 
theres many systems that work and peopel use. reaosn why they turned him off is idiotic.
anyways im waiting for 'new libertyreserve' and v.me to really go on
 
The guy fully deserved the treatment he got. He's a one-man shop, threw $75k into a project, then showed up on Dragons Den and proceeded to say he's going to destroy PayPal, and has the most secure online payment processor in the world.

That's similar to me leaving my mom's basement one day, going on the show, saying I developed the best search engine in the world, and will be taking Google out shortly. I would fully expect to get my ass handed to me, which I'm sure is what would happen.
 
avatar33 said:
On both Dragons Den and Shark Tank I noticed that the investors suck when it comes to evaluating internet ideas. I was hoping they'd ask him a relevant question, like:

- Who programmed it and what language was used? What programming standards were used to ensure maximum security and encryption? What's his monthly traffic? How many users does he have in his database? How does his service compare to other players in the industry such as 2checkout, moneybookers, Google checkout, etc...

but instead they just decided to flame him based on his 2k/month sales volume. (which I think is not bad considering he was a newcomer with very little dollars spent in advertising)
Click to expand...


Word, internet ideas are barely fully understood by investors like these. The dragons are experts at more traditional business models.
 
Well, the past has proven that there is plenty of room for paypal alternatives. It's not even that hard to be more attractive than paypal. But he's probably not gonna make it by just cutting the 30 cent fees. Most of the other PP Alternatives have dabbled in risky transaction. I remember moneybookers suddenly accepting adult a couple of years back. Or look at e-gold providers, offering some sort of anonymity for who knows what (the US gov says money laundering). These are the driving forces of consumer interest, no 30 cents.

People are not trusting some obscure website with cheesy stock graphics with their money to save 30 cents.

I bet he's gotten a lot of good advice though. Looking at his website, it looks a lot more credible.
 
You must log in or register to reply here.
Top Bottom