November 11, 2006 |
It’s Friday, and you’re thinking, “I don’t want no suit-and-tie news reel mentioning the latest and greatest.” The last day of the week is different than the rest, so here’s something to contrast some of the week’s announcements.
The musings of a PhD student on a blog called Unit Structures are as insightful as they are informative, and in a post published Nov 9th, Fred Stutzman articulated on the role of funding agencies and their tactics in pursuing Web 2.0 startups, blogs, and even some already-established companies. His impressions on their current scouting methods for new and potentially highly profitable ideas are worth the read alone.
According to Stutzman, many angel investors and VCs are obtaining tips from standard set of “mainstream” blogs out there – the Engadgets, the Techcrunches, etc. No secret meets for them to attend. The info they’re hedging their bets on is as public as can be. From what I can tell, this makes chance for error in nabbing sure things as great as it would be for any ordinary bloke. It’s no shocker to find that the guys with the deep pockets are eyeing forums for the everyman in the hopes of nabbing that perfect pick.
The new internet bubble is full of sites that hope for a cash infusion, but instead of hoping on a prayer, VCs just turn to the internet hubs that vet the weak and fluffy from crowd and leave a strong and resilient few still standing and ready for picking. Yep, their work is done for them by Diggers, downloaders, and the multitude of reviews that crop up everyday around the globe.
If this remains the case, it’s fair to say that only things that separate the feeders from the leaders are the number of zeros in one’s bank statement. Whether that’s good news or bad, I guess that’s for you and I to decide. [Sigh] Oh well, at least the weekend’s here.