WIRED mag on VCs Adjust to Facing More Competitors for Fewer Companies. Appropriate given tonight is the bi-monthly Webinnovators group meeting here in Boston. David Beisel at Venrock founded Webinno, he’s done a great job bringing startups in front of an audience that now is pushing 400 people per event. Hey, this blog is the #2 link on Google for “webinnovators.”
I’ve been to a few events lately billing themselves as “like webinno, but smaller, more focused, easier to meet people.” Webinno is hit or miss in terms of connecting with useful people, as are most large-scale networking events. Unless you are a pro networker, you’re wandering around the room and practicing your quick exit strategy, as in “nice to meet you gotta go.”
Boing Boing’s Corey Doctorow says most Internet startups don’t need VC, or if they do, it’s for small seed rounds. I say it depends on the market sector. Nobody builds a new piece of hardware like a router on their credit card.
Paul Kedrosky, a partner with Ventures West:
Right now, honestly? This time sucks for us, it’s a bad time.
Most internet startups these days are simple to the point of being more of a web service, requiring less startup capital, fewer employees and a totally flat org hierarchy. Six months from cocktail napkin business plan to finished closed beta service is almost the norm these days. Anything more and you’re legacy building, which is a waste of time for the most part in most entrepreneurs minds, unless you’re building a router.
I was surprised to see that the WIRED article says nothing about the other values VC bring to the table, like experience, connection, mentors and other back-room value that’s lost to most entrepreneurs in the beginning.
See you tonight, Royal Sonesta Hotel, Cambridge.