A handful of angels recently turned their nose up at a company making a useful, well-targeted and well-validated computer peripheral product. An extremely smart entrepreneur who’s new to the organized angel game asked me a pretty fundamental question in response: “why do angel investors (and to some extent, VCs) turn up their noses at real, down-to-earth physical product companies and instead chase etherial web and process flow services businesses?” Good question, and one that comes up frequently, so here goes…
Cloud-Enabled Business Models (Or Why iTunes Match Will Change Your Phone)
Gartner’s hype cycle charts how all emergent technologies start with a trigger, quickly ramp up to a peak of inflated expectations, drop in to a trough of disillusionment and then move back up a slope of enlightenment onto a relatively stable plateau of productivity. Cloud computing is moving right along that curve; the initial buzz was followed by a paralyzing fear of security issues, but we are now well up the slope of enlightenment: cloud computing is here to stay, and nobody disputes that it’s going to have a huge impact.
The power of cloud computing to enable radical new business models is really starting to be felt on a massive scale.
Zynga’s Bad Kharma
Quick follow up to my recent post about Mark Pincus hitting a new low at Zynga by demanding stock back from employees on threat of termination. NYTimes has picked up on the story in a piece by Evelyn Rusli: Zynga’s Tough Culture Risks a Talent Drain. My point in my recent post as well as the original one was that Pincus seems to have difficulty not being a selfish *sshole and that it should, and would, eventually catch up with him.
Pincus is a Greedy Dirtbag (Zynga)
I’m already on the record with my profound lack of respect for Mark Pincus and his stop-at-nothing greed and selfishness. His pursuit of personal wealth as CEO of Zynga is well-documented. He’s looking out for himself, regardless of the impact on the other stakeholders around him. I outline the fundamental issues in this post. The speech he gave to an audience of new entrepreneurs about how he used every dirty trick he could think of to trick early customers and grow Zynga revenue (captured here on video) was certainly a low point.
But I think he has hit a new, even lower, low.
Localytics CEO on Steve Jobs, Raising Capital, Mobile Apps & TechStars
Here’s a short video interview with the Founder and CEO of one of my portfolio companies, Raj Aggarwal (@analyticsraj) of Localytics. Raj sat down for a few minutes with Keith Cline of VentureFizz. In this short video interview, Raj talks about the origins of Localytics, his experience raising money from Launchpad Venture Group and others, his pick axes & shovels strategy for Localytics, and his experience working for Steve Jobs on defining the early iPhone business model…
Groupon is Radioactive
There is just no other word to describe this mess of a company. I have already discussed Groupon at some length in the context of talking about picking co-founders and co-investors carefully, but in the wake of Groupon’s crippled IPO, Michelle Conlin , business writer for the AP, just published an excellent analysis of where the company sits at the moment entitled “Groupon’s fall to earth swifter than its fast rise“.
Michelle Conlin on Groupon’s current plight:
“…the startup that pioneered online daily deals for coupons is an example of how fast an Internet darling can fall…”
On their IPO: