Perspective, Pontification and Propoganda about Entrepreneurship and Venture Capital, brought to you by David Hornik of August Capital.

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Zoli Erdos

David, what's the process to apply as a presenter company?
Thanks.

Zoli Erdos

David, what's the process to apply as a presenter company?
Thanks.

Zoli Erdos

Sorry for the doublespeak.

Jack Krupansky

I went through that entire list of companies, visited their web sites, and tried some of their services, and frankly, not a single one of them passes the old Larry Ellison test: "Gee, that's a nice *feature*, but it's not a viable business."

Have you or any other business-minded VCs actually vetted their business plans and believe that *any* of them are really headed on the path to being the next Microsoft or Google (high revenues and high profitability), or are they all modeled on the old "hype and flip" model of VC liquidity?

-- Jack Krupansky

Albert Lai

Jack,

While you MAY be right in some of the cases above (I really have no way of confirming), and perhaps some of the companies really are feature sets, and don't have a real business model established (or hopes of ones) -- and I'm not saying that anyone on the list doesn't have one, I just don't know. But please consider the possilbity that some of the companies listed (in our case, BubbleShare), may actually have a real business model, and in some cases, real significant customers, that may not have been announced pubically yet. =)

Regards,
Albert Lai
BubbleShare

Jack Krupansky

Albert: Agreed... that you *may* have a credible business model, but until you go public with enough detail to validate that it's credible, I'm afraid that it *doesn't* have automatic credibility.

All I can do is read your web site and hypothesize what aspects of a business model you *might* have. Subscription? Advertising? Strategic partner? Flip? Etc.

I'm certainly not asking you or any other entrepreneur to give away the store as far as specific business strategy, but simply to come clean, including with your *users*, "Here's how we make money". After all, as a user I don't want to get locked into a "free" model and then be confronted with a sudden switch to an onerous subscription model.

In today's venture world, I think people assume three things: 1) you probably haven't given sufficient thought to a truely viable business model, 2) you'll fall back on advertising for revenue, and 3) you'll *probably* flip before the lack of sufficient large-scale revenue becomes a life and death issue for the business.

If you wish to hide behind the "stealth" shield, all I can say is that your business credibility will likely suffer.

Still, I'd love to see you "out" at least the rough framework of your business model so that any and all can see what your viability really is.

When I look at BubbleShare, what I see is a "feature", not a full-blown business. That suggests "flip", but why not simply make clear to us what the truth is?

My big interest is in understanding the depth and magnitude of the contributions of the venture capital sector to the our national economy. Without a sense of business models, I can only imagine the contributions. That's not good PR for the VC sector.

-- Jack Krupansky

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Wil Schroter

David, any chance of getting the Go BIG Network on the panel?

I know we don't have a cool, catchy verb-like, vowel-ending, flippant name, but hey - we're actually profitable!

Seriously, if we can get on, I'd like to participate. You've got my contact info.

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