Tag: funding

Giving VCs what they don’t want with Twitter

Union Square Ventures just funded Twitter. Fred Wilson noted that the company has no business plan, but they’ll figure that out as they go. Paul Kedrosky threw in his two cents, coming to the broad conclusion that business plans give investors too much to nitpick. These guys are professional investors, so you have to listen. You don’t have to follow – it’s just the opinions of two investors who happen to know each other pretty well – but you do have to listen.

A good portion of the investment and entrepreneurial communities will proceed to adopt the same tack now that it’s been publicized. Others will call this attitude a sign of froth in the market, and become more cautious about ongoing opportunities. Giving investors what they want (or don’t want) should be viewed as a by-product of which camp they are in.

Listen to a few stories around the fire before you decide which camp that is.

Donor dollars blowing in the wind

Yea, the political blogosphere is grassroot, people-powered, and other such malarkey. But there is too much blabber about corporate funding, and how it is so one-sided. Bottom line – fundraising birds seem to ride whatever wind blows their way.

VC overhang & the “Topix” phenomena

I have often wondered what would happen when the two mentalities collided. On one hand you have the VCs, with rolodexes a mile deep, including direct lines to the best bankers. Any of the Sand Hill Road crowd will do. On the other, you have the scrappy entrepreneurial types, very creative and driven, and often with a little cashola of their own, garnered from previous deals. Guys like Mark Fletcher, founder of Bloglines, come to mind. Then you throw Google’s rejection of the status quo into the mix, with their dutch auction IPO, and you are left with an interesting dynamic.

Is the venture funded deal becoming a thing of the past? I wonder.
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