Archives for January 2012

Delusional Economics

Rohit Bhargava recently wrote a great piece called The 4 Principles of Delusional Economics. Start-up entrepreneurs should give it a read. The core point he makes is that a growing number of businesses expect some unreasonable behavior change or act of altruism from their customers as the foundation for their business’ success. [Read more…]

Why Angels Chase Electrons

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…

[Read more…]

Two Things Crowdfunding Movement Needs to Succeed

My buddy Daniel Sullivan of Crowdly wrote me recently for input regarding his crowd funding project which is focused on driving grass roots support for the crowdfunding bill of Senator Scott Brown, Democratizing Access to Capital Act (S.1791), which allows a non-accredited investor to invest up to $1,000 in a company.  (For a bit of background on the accredited investor concept, including recent revisions to the rule, see this NYT piece published last week.)

It is an interesting project and I am supportive of the concept (though I acknowledge the potential for issues down the road.) Dan asked for some input on a couple aspects of the project, and it gave me an excuse to crystalize my thinking on the issue, so I figured I would share that thinking here.

[Read more…]