Startup Quote (User Experience)
“Sometimes, the best part of buying something… is the buying part.”
“Sometimes, the best part of buying something… is the buying part.”

True Ventures points out in their recent post, Venture is Back, Baby, that liquidity is confidence and liquidity is ratcheting up in tech with recent acquisitions and possible IPOs lingering for 2010. Crunchbase is showing a flurry of activity, as well, with their acquisition tracker tracking 2500 deals with a total acquisition price of $372B. The usual suspects (Google, Microsoft, Yahoo, AOL and Cisco) are picking up companies on the cheap and not so cheap (Google, Adobe and EA paid premiums for recent acquisitions of AdMob, Omniture and Playfish). Other companies like MySpace and Apple are cleaning up on the music front and taking advantage of fire sale prices with companies like LaLa, iLike and iMeem. On the front end of startups we're seeing a lot of competitive early-stage (seed and A) deals, and later stage (B, C and even D) deals are way up with good valuations. Yet, the bigger tech guerillas are still laying off (down a bunch compared to November of last year). As Om pointed out, it's an odd time in the tech industry right now, however, the opportunity behind the uncertainty is what has me most excited.
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Posterous is growing up. Custom theming and a better user experience is their latest offering. It's the simplicity of Posterous that makes it so elegant.
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I learned of Gigya back at Demo in early 2008 when we launched Flypaper and saw a demo of an incredible back-end to Sprouts widget creation tool. Sprout was able to show us where their user's widgets were traveling, living and how they were performing. It was Gigya's Analytics powering this visual buffet of data. At Republic Project we used the Wildfire feature to power the sharing behind our artist widgets and now we are experimenting with their Socialize product to power sites and other widget projects.
Gigya's Wildfire
In a nutshell Wildfire boosts widget distribution by enabling users of the widgets to easily install those widgets in places they want them, including more than 70 social networks, blog platforms and bookmarking sites – all without leaving the site or app. It helps to:
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A great quote from Sergey Brin about conducting business in an economic downturn in Google's 2008 Founders Letter: "Nonetheless, I am optimistic about the future, because I believe scarcity breeds clarity: it focuses minds, forcing people to think creatively and rise to the challenge." Official Google Blog: The 2008 Founders' Letter
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Why, all of a sudden, is everyone an “expert?” Every month, I run across hundreds of Twitter, Facebook and LinkedIn profiles that claim "expert" in the bio. Whether or not to follow or friend a person back is largely based on whether or not they make the expert claim. To me, the expert claim immediately tells me you are not an expert. Experts don't make claims. They don't have to. They’re recognized by others as an expert. Real experts may acknowledge it. They might say, "oh, I guess I am an expert," and without actually claiming it themselves, move on and let others tout their expertise. Twitter is chock-full of so-called social media experts, SEO experts, Internet marketing experts, network marketing experts, wine experts, mortgage experts, real-estate experts. You name it, if there is an expert out there, likely they found Twitter as a home to spout off about their awesomeness. On the flip side, I met with a buddy a couple of weeks ago who asked what I thought about calling himself an “M&A apprentice." He went on to explain how he’s always learning. That he’ll never be an expert. However, if you knew this guy's background, you'd agree that he's no novice. He is an expert. He’s led over 23 successful M&A's for major corporations and startups. He’s taken 2 companies public and has created more wealth for his investors and shareholders than you can imagine. He is recognized as an expert by his entire industry, yet his bio and words claim "apprentice." So, next time you think you have to dial up the “expert” card to gain credibility, remember that most experts don’t make the claim.
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Starting on September 5th I went on a social media diet. My Macbook Pro logic board bit the dust and up until yesterday I was pretty much machineless. Okay, I still checked in on emails and a few social sites, but i did very little by way of production. My diet was purely consumptive. So, I am back on board with a sorta working machine. Still working out the kinks. Time to start producing again. Oh yeah, was the break worth it (even though it was kinda forced)? Definitely!
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"In a start-up company, you basically throw out all assumptions every three weeks."
-William Lyon Phelps
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In response to the Pitch Deck post, my friend Greg Head (@gregheadaz), asked me to write an add-on about “the 10 things we need to see to invest” over at venture51. It’s an interesting angle because Greg knows a few things about startup, venture capital and the “right ingredients.” Greg’s been involved in some pretty successful starts like ACT! and Saleslogix (where we met) and Flypaper (where we got the band back together again) and now works with FireHost, a really interesting new take on the otherwise-diluted hosting category. Though ACT! dates back to the pre 90s and Saleslogix has burned through it’s 10-year anniversary, I still think the ingredients that make for a good startup and the things we look for at venture51 are fundamentally the same as they were before cell phones were mainstream ;). However, I’ll say the biggest difference has to do with running a lean operation and making sure you get your product to market without it having to be perfect. There was a time in Tulip Mania when perfect was good and capital was limitless. Not anymore! All this stated, here are the 10.5 things we look for at venture51 when looking at startups. TEAM Still the most important asset. However, we don’t need the “been there and done it before” mentalities. TBH, unless the “been there’s” have adjusted their paradigm to the new model (previous post on 21 Paradigm Shits here) we prefer to not work with them. What we are really looking for is: BIG PROBLEM, DECENT IDEA All we want to know here is that A LOT of people have this problem you are trying to solve. At this point if we can see the problem then the execution around the idea is much more feasible. FOUNDERS WHO ARE WILLING TO EXIT EARLY We are not a swing for the fences mentality. Too many founders and early-stage investors get fucked by VC’s unwritten agreements about exiting early. Not here, we align with (obviously the math has to be right) the start to plan the exit. The start needs to have an idea of who this is being built for, unless we all agree that there is a good cash generating business to extend the runway. A URL OR WORKING PROTOTYPE No ideas please. Show us something. REALISTIC REVENUE MODEL WITH NO HOCKEY STICK Hey, if you are only going to do a million dollars in year 2, then you are only going to do a million dollars. We don’t want pre-fabricated spreadsheet masturbation. Give it to us straight. CUSTOMERS (or commitments) This is not a must have, but man it’s nice. LEAN (Low burn and lots of runway) Not sure this needs anymore explanation. $10K - $20K monthly burn rates are music to our ears. Actually no burn rate is, but that’s probably not realistic. AGILE MINDSET (Velocity) The perfect better not get in the way of the good. Getting not-so-perfect product to market faster only makes it better. Just go! IP This is always interesting, but IP is a plus. However, agreeing on whether it’s really IP is a whole other topic. IN OUR WHEELHOUSE (Consumer web, real-time web, social web, mobile and casual gaming) This is where we play. BALLS OF STEEL (Metaphorically speaking) Make us feel confident that you can kick anyone's ass.
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"Running a start-up is like being punched in the face repeatedly, but working for a large company is like being waterboarded." -Paul Graham (Ycombinator)
This quote doesn't need much more explanation. It's one of my favorites.
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