Showing posts from March, 2010

The New Face of Venture Capital, Part 2: Rise of Crowdfunding

This is Part 2 of a presentation I've created to help Limited Partners and entrepreneurs understand the future of successful Venture Capital. Part 1 is here. Part 2 explains why conventional VC networks & outlier identification produce poor returns, and how crowdsourcing/crowdfunding will be used to augment or replace them and to create high-return VC of the future.

The New Face Of Venture Capital, Part 2
I have many deeper throughts. Feel free to contact me about them. If you find this useful, feel free to pass the word.

Disclosure: related IP, no positions

The coming "Finder's Economy": intermediation of life online

While a vast majority of the media seems preoccupied with what the Next Big Thing will be online, there is scarcely any coverage of a monster future trend which will sweep across nearly all interesting online sites. And it represents a multi-billion dollar market, which will transform and touch not only the way that people utilize online services, but also online search.

Before diving in, a quick look at the macro economics picture will set the stage for what I call the upcoming "Finder's Economy". If you at all believe that our planet's exponentially growing human population (~7 billion) is running into carrying capacity and resource constraint issues, then it follows that we will consume incrementally less per-person, over time. And stuff will become more expensive. So how do we transform a world of billions from a consumption to a services economy? This is the environment which will yield the "Finder's Economy".

The Finder's Economy is to onli…

The New Face of Venture Capital : a roadmap for LPs and entrepreneurs

This is a presentation I've created to help Limited Partners and entrepreneurs alike, wrought from a life in startups and studying the business of innovation. It's an overview of forces at work, driving sub-par returns in the Venture Capital asset class, and identifies the attributes of VC which will yield viable startups and stronger returns to LPs.

Currently, the IRR across the VC industry is dismal, and will continue to be so, except for those innovative firms who adapt and pioneer the necessary new model. If you ask entrepreneurs, they will tell you VC is broken, because it doesn't serve their needs. And LPs know it by way of poor returns. The global financial system collapse has masked many of the secular trends in VC and technology innovation, which were destined to collide with an archaic VC industry in any case. The biggest such trend, rate of change, is unrelenting and driving radical change in the industry. Sadly, a number of VCs I've talked with don…