Web2.0 Businesses, Adam Lambert, pizza parlors, Google

There is no doubt that the Web 2.0 ecosystem has dramatically shrunk the development time to launch a web-based business. My friend Robin Chase has written several blog posts (Web 2.0 is like Yeast: Rampant Growth Possible) recently about just how easy it is to create these businesses. So, my question is, how do investors and entrepreneurs think about Web 2.0 business models? What kind of investor is right for your business? I see three buckets of businesses: 1) The American Idol businesses. Investing in the next face book app, iphone app or web 2.0 idea that takes less than 6 months to develop and has no differentiation other then it is a cool idea. The entrepreneur is hoping for rapid viral adoption like www.fiverr.com. Investing in these businesses is no different than being a talent agent or a record producer. You are betting that the entrepreneur has talent and a hope that you have the next great singer under … Continue reading →

Boston entrepreneurial leaders please stop whining about Boston

I went to my third entrepreneurial event in the last two months last night where the panel discussion degenerated to a groupthink discussion about how Boston sucks for young entrepreneurs. There are no angels that fund anything and how the best course of action is to head to the left coast if you want to start a business. This panel discussion was held at MIT and was sponsored by the MIT Enterprise Forum of Cambridge. That is Cambridge Massachusetts for those of you paying attention and not Cambridge, Silicon Valley, California. This thinking is counter-productive and has got to stop. At the vast majority of these events, we convince all the smart entrepreneurial graduates that they should take the first train to California and seek their fortunes, much like the 49ers searching for gold. I love Northern California and there is a somewhat greater appetite there to fund highly capital efficient, very early stage, internet consumer plays, but this does … Continue reading →