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

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I pretty much agree with you. I read a short paragraph Wired the other week saying that most startups are out to get bought by one of the big guys (google, ms, apple etc) and few are truly looking to take them on. I think many Web 2.0 companies are about mashup and integration of services from many of these companies (e.g. how many Google Maps spin-offs are there). In this case, you really don't need huge investment - if you really just want to take a gamble on "look how good i am, buy me".

However, there are many companies (i believe - and quite a few in Web 2.0) that want to really take these companies on. I'd guess many in the mobile space (disclaimer - we are working in that area). In this case, angel investment will get you to the platform, but a much bigger investment of experience, cash and connections is needed to go to the next level (if you were to challenge an area of Apple for example, you better move fast!).

This is for example, why we are going as far as we can without investment as i believe the social web gives you a lot of opportunity to validate your ideas as a living prototype - after that investors take more notice (and you have more than an idea as well).

Fred Wilson


i posted on this topic last december

basically, entrepreneurs can go pretty far on their own or with some small funding from angels. web 2.0 is great for that.

but eventually, if you have a hit on your hands, you are going to have to sell or raise VC (or both).

the slope of the capital consumption curves have changed, largely in favor of the entrepreneurs and possibly in favor of the angels, but the big winners take capital. myspace did, facebook did, skype did, youtube did, twitter will, etc, etc.

it's all good. i think in this case everyone has better economics.


Hi David,

Heard of It was created by Stuart Skorman who has recently written a book about his life's ventures as a serial entrepreneur. He sold to Hollywood Video for $100 million and has since taken part on many other ventures. I would be happy to send you a copy of the book. I thought it would make for a great topic on your blog. Stuart is also available for an interview. If you are interested I will get a media kit and the book in the mail immediately as soon as I have a mailing address. Thanks.

P.S. Sorry, I didn't know how else to contact you.

John Terceman
O'Connell Communications


Hi David,

I attended the panel discussion as well as your "viral" discussion later in the conference. Have to say I was very entertained and appreciated the insight you and your colleagues shared during the VC discussion.




Hi David

Here is one more example of what it s possible to do with almost none investment.

I hope you like, and blog it!


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Good stuff as per usual, thanks. I do hope this kind of thing gets more exposure.

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