Do Venture Capitalists Suck?

Dave McClure, formerly with PayPal now at 500StartUps, posted a great article this past week he titled, “Scaling Venture Capital. We suck. We can do better.” I encourage you to read it.

Dave makes two points. The first point is that most venture capitalists are hypocrites. They expect entrepreneurs to build large, global companies while they as venture capitalists have never personally held an operational role nor built and scaled a large, global successful company.

I think it is this issue that tends to cause a lot of friction between entrepreneurs and venture capitalists and it is this point I am going to focus on here.

Are You Capitalizing Upon Your Social Media-ness?

I had a great meeting with Bindu Reddy last week. Bindu is the CEO of MyLikes and the former head of product management for Google Apps. Her husband and co-founder of MyLikes, Arvind Sundararajan, is the former tech lead for AdSense.

The premise behind MyLikes is simple: we are more likely to trust the recommendations of our friends, colleagues and advisors more than we trust consumer ads and the opinions of people we don’t know (with the exception of Hollywood celebrities and sports stars because, of course, we all know they are completely believable, role models for our children and extremely well educated – sarcasm intended).

Are Large Incumbents Structured and Motivated to Innovate? Spin Ins Might Help

I wrote about the dearth of innovation within large companies a couple years ago but I didn’t post anything in this blog on the topic. Based upon a number of conversations I’ve had lately, I thought I would dust off  and update what I’d said previously and reintroduce the idea here.

I look forward to any feedback you might have. 

Is Your Business Idea “8 Minute Abs” or “7 Minute Abs”?

For those of you who have seen the movie “There’s Something About Mary”  – the 1998 comedy starring Cameron Diaz, Ben Stiller and many other great actors/comedians - there is a scene where a hitchiker (Harland Williams) is picked up by Ted (Ben Stiller) and the hitchhiker – who the audience knows is a psychotic killer - starts telling Ted about his great new business idea:

What It Takes To Make A Successful Software StartUp Today

Our newest partner at InterWest Partners, Keval Desai - who is a former Google product executive -shared with me a very interesting report he received this week; it’s called the “Startup Genome Report”.

It was published based on data from 650+ web start-ups. The authors are Berkeley & Stanford professors including Steve Blank.

The goal of the report as the authors describe it is “…to lay the foundation for a new framework for assessing startups more effectively by measuring the thresholds and milestones of development that Internet startups move through.”