My daily readings 08/23/2010

  • tags: lifestyle

    • Inspired by books and blog entries about living simply, Ms. Strobel and her husband, Logan Smith, both 31, began donating some of their belongings to charity. As the months passed, out went stacks of sweaters, shoes, books, pots and pans, even the television after a trial separation during which it was relegated to a closet. Eventually, they got rid of their cars, too. Emboldened by a Web site that challenges consumers to live with just 100 personal items, Ms. Strobel winnowed down her wardrobe and toiletries to precisely that number.
  • tags: Startup

    • It’s much more easier to start a web company today than 10 years ago. Cheap cloud services. Endless web frameworks. Client side libraries. Server side libraries. Matured architectures. Many best practices.

      What’s improved in VC world in the last 10 years? Better laws? Better standardized practices?

    • Every time I read “If you’re an entrepreneur, you need to focus on profitability”, I think to myself:

      No shit.

    • i can see how you can take the post in that way.

      but i didn’t mean it that way.

      i’m just concerned that there isn’t as much capital around to fund all of these companies in the follow on rounds

  • tags: Startup VC

    • Part of the answer is that this crop of startups will get bought out earlier than those who have come before them. Look at Hot Potato. Josh Kopelman said “we’ve only been investors for a couple of months” about Hot Potato. That is a good outcome for the founders. Not so much for the investors. But it is going to happen more and more as large tech companies look for teams that have a proven record of building and launching strong products.
    • Union Square Ventures’ first fund was raised in 2004. We invested in twenty-one companies and we still have sixteen active companies. And we still have $25mm on reserve for them. Christina and I calculated last week that about half of those sixteen active companies still might need more funding from us. So we have eight “kids who have not yet reached adulthood”. That is six years after we raised the fund.

      The thing that nobody understands until you’ve lived through it is just how long it takes for some companies to get profitable and self sustaining. And just how long it takes for some companies to get liquid and leave the portfolio.

    • So, if you are an entrepreneur you should be very focused on either getting to profitability or getting a VC firm or two with deep pockets into your company (or both). If you are a seed investor, don’t go quite so fast. Reserve some funds for follow on investments. And help your portfolio companies get to profitability or get a VC firm or two with deep pockets into your company.

      I think this expanding birthrate is a great thing. Entrepreneurship is alive and well all around the world. Smart and scrappy entrepreneurs are imaging new products and services and building them. But we all should be careful to think about how we are going to fund all of this company creation. Not just the first part of it, but all of it.

  • tags: idea

Posted from Diigo. The rest of my favorite links are here.

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