Scribd CEO: Start-Ups Should Focus on Long-Term Growth
Mark Zuckerberg's rogue purchase of the photo-sharing app Instagram has a lot of tech start-ups sitting on the edge of their seat hoping they might be snatched up next.
But Trip Adler, CEO and co-founder of Scribd, the social reading and publishing website, said it's more important for young start-ups to focus on long-term growth rather than just being acquired.
"I think it's very important for entrepreneurs to stay focused. I've been hearing people saying things like "this is the time to have your moment," but I don't think that's right. I think it is better to stay long-term focused and keep building long-term value," Adler said.
There is an abundance of opportunity in Silicon Valley right now because of the enormous amount of change happening in the way people use technology, Adler told CNBC.
"People are now switching their web usage habits from the web to mobile devices and tablets. People are now navigating the web in new ways, it's the social web, there's all kinds of new business models that are possible. That's why you are getting all of these break out companies," Adler said.
Scribd, which has doubled in size every six months and now has about 90 million monthly users, has a three-part revenue model. The company has ads on the website, offers premium accounts for a fee and allows users to buy and sell content.
"Right now we are focused on building the best long-term business we can," Adler said.