Venture Money, now and in the near future

One of the things I am doing these days is working with young companies. From Linked In to old friends, to guys who read this blog I routinely get contacted for ideas and advice. I am looking very hard for my next opportunity and one of the the things I am struggling with is should I go start up, or should I go back to my roots in the supply chain world. Be that as it may I am keeping my ear very close to the smart people in the web venture world these days for a variety of different reasons.

Brad Burnham, partner at Union Square Ventures in Manhattan is a really bright guy who is about as dialed in on web now and web future as you are going to get. If you are an entrepreneur or an operator, you should listen to what he has to say. The above interview is about 5 minutes long. I highly recommend it.

No 1 of Consequence

Asking the right questions

I have an idea for a product. How can I get it made?

I can't tell you how many times I see e-mails like this. I was even approached for a consulting gig this week by someone who has a product idea he wants to produce. Is it a good idea? It all depends on whether he asks the right questions before moving forward. Also before I invest my time and energy into someone else's entrepreneurial idea they are going to have to answer some very hard questions from me on the topic of their commitment to the idea.

That's really all it takes to get a product produced. Commitment. It takes a commitment of time and a commitment of money. Time to find the right people to fill the knowledge gap where yours wanes. Time to make sure you know what you want to do with the product once it is produced. Money to pay the people who can fill the knowledge gap and money for the prototype phase and initial production runs of you product. It is as simple as that. Any other challenge you think you will face can be shoved under those two umbrellas, time and money.

Getting it made is the easy part if you identify the knowledge gaps and are willing to pay to have them filled. The hard part is what do you do when you are holding "it" in your hand.

No 1 of Consequence

The internet is dead and boring... says Mark Cuban

Mark Cuban did an interview with Lloyd Grove and said the internet was on the decline. Due to the backlash from the interview he has followed up with a couple of blog posts amplifying and inflaming his comments and detractors.

Here are some of his comments:

The days of the Internet creating explosively exciting ideas are dead. They are dead until bandwidth throughput to the home reaches far higher numbers than the vast majority of broadband users get today. Few people's actual throughput to their homes have increased more than 5mbs in the past 5 years, and few people's throughput (if you dint understand the difference between throughput and the marketed downstream speeds your read from your ISP, you should) to their homes will increase more than 10mbs in the next 5 years. That's not enough to define a platform that allows really smart people to come up with groundbreaking ideas.

Let's be clear about my opinion of Mark Cuban. He is a visionary businessman that has created a billion dollar fortune out of ideas. That is something to be respected, in my opinion, because I spend a large part of my day trying to come up with the next winning idea. However, in this particular case I think he is dead wrong.

Let's assume for a moment he is right about the bandwidth that most people's homes will be able to manage. All that means is the smart people will have to think of ideas to make use of the bandwidth people have. I am sure there are start up companies out their right now that are working on data compression technology that will allow the kind of content delivery Cuban thinks necessary for the internet to advance. Maybe the better questions is why do people need more throughput to their homes for the net to advance beyond it's current state?

Take a look at the history of the internet and the creation and loss of great wealth that has come with it. Look at the new tools that are popping up and the different ways of interacting with everyone that is, was, or will be in your life. To say the net is in its infancy might be a gross overstatement, but it is definitely in its adolescence. The world is making demands and the markets follow demand. If the net truly needs greater throughput to expand, it will have it. My hypothesis is that someone will think differently and come up with a better idea of how to use the bandwidth that exists to advance the net for themselves and for the world.

No 1 of Consequence

***EDITOR'S NOTE*** A lot of my respect for Mark Cuban has been lost. He is scheduled to appear on Dancing With the Stars.

Puppet

Lately I have been feeling like a marionette. I feel like I have not been in control of my own destiny. Work this last year has been tumultuous at best and while at one point I thought this position would bring me fortune, I am beginning to think that is not the case.

In the last couple of weeks I have taken steps to regain control of my destiny as it were. I have launched an entrepreneurial venture that could prove very lucrative should my partner and I be successful. He has a history of success in these types of ventures so he seems like the ideal person to be getting into business with.

Also, I have been working on an invention, design modification that will increase the fuel efficiency of Class 8 18 wheeled tractor trailers by a significant amount. I have been told that if you can save truckers 1 cent per mile your invention has merit. If that is the truth this is potentially worth billions. I have approached an engineer with a long history of achievement to assist me because while my little mind can conceive a great many things, I have NO idea how to actually make it work. I am meeting with a patent attorney this week.

I have a number of other entrepreneurial ideas bandying about in my addled mind, but these are the two that are getting launched within the month. Of course, the patent attorney could tell me I am late to this particular party and I will have to flush the idea and the venture with my non-engineering partner could crash as quickly as it took flight, but I am cautiously optimistic.

No 1 of Consequence