Its really hard to call Web 2.0 companies ‘businesses’ for the simple reason that most of them don’t have revenue, don’t plan on developing (or rather can not) any significant revenue streams in the near future and hence, exist solely to provide cool services while the VC money is burning the stove. End result: You get features and micro-services masquerading as companies.
Worryingly, you have respected investors like Paul Graham of YCombinator urging entrepreneurs “not to sweat the business model too much“.
The guys at XuQa have taken that first step towards making a real Web 2.0 ‘business’. Rock On.