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 →