The Role of Investor Risk in the Lost Decade for Entrepreneurs

Welcome to the Lost Decade (for Entrepreneurs, IPO’s and VC’s) « Steve Blank:

Steve Blank puts together a good overview of the history and current environment for start-ups and why the lack of an IPO market has changed the game for venture investors.

It is also good illustration of how risk-adverse the venture community is when it comes to making investments. Read more of this post

diaspora, Mr. Brainwash, and Why An Article in the NY Times Won’t Ruin Your Start-Up

An interesting piece discusing how group-funding sensation diaspora which had potentially tapped into a well of anti-Facebook sentiment with its open-sourced alternative. The central point of his post was to muse over how this might be a watershed moment for Facebook rather than a validation of diaspora one way or the other. Read more of this post

Y-Combinator and Techstars Performance – Lessons Learned?

The first look at Techstars historical data came out last month and the results showed performance very similar to the early results posted by Y-Combinator. The quality returns would lead us to believe that a.) the guys running these shops are geniusesb.) The systems they use are superior systems for identifying quality teams and opportunities; or  c.) both… Of course its probably d.) none of the above – which isn’t a knock on these organizations – not at all.  Instead, I think its d. because of the sheer size of the opportunity that these firms are tapping. Read more of this post

New Seed and Start-Up Funding Model?

Its pretty clear that the venture capital model that has evolved during the Internet and post-Internet era is under pressure from its two most important constituents – investors that have for the most part gotten sub-par returns in venture funds (even when risk adjusted and particularly when you get beyond the top decile of VC firms) and entrepreneurs that have found it harder to find venture funding – particularly start-up or seed funding – and more importantly have found it hard to find the right amount of funding for their given idea. Read more of this post

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