Slater Ramblings

new media economics

2007-01-04T08:07:00.000-08:00

I love how investment banks are the true pro's of package regurgitation - almost like legal plagarism. This report is one such example. If i were mr bubblegen i might be slightly peaved, as i for one certainly saw alot of these concepts first on Umairs site, and quite some time ago. I would have made the point alot quicker by analysing the networks content of Saddams execution with that of the user generated one. (however dark and ironic it may be)

3 Months off

2006-12-01T08:48:00.000-08:00

Wow - have not posted in 3 months. much has happened! got married, took time off - travelled south america..... I intend to make a resolution and start putting my thoughts out there again .

on: sea change in information consumption

2006-07-29T06:23:00.000-07:00

Ok - so by know most of us are over loaded on information regarding the mid-east developments. Mostly through TV, then news papers and internet and so on. then i went to Jeff Jarvis blog - buzz machine - a wonderful free thinking blogger he may be - just go and read the comments on his posts about the subject. make your own conclusions but i am completely blown away.

on: the politics of ignorance

2006-07-27T06:22:00.000-07:00

not much to say here - read this

The best VC pitch ever

2006-07-14T11:44:00.000-07:00

Someone put this up and you tube and i had to grab it. One of the most hilarious comics in recent times manages to capture how truly absurd a VC pitch can be. Pure genius

On: Mumbai

2006-07-11T10:03:00.000-07:00

Well another sorry tale in religious differences distorted. Today we turn to Mumbai, bustling city of 17 million people comes to a complete halt after what has become an all too common tactic of simulataneous transportation bombings kills at least 135. What struck me as i watched this coverage - CNN flipped to its indian affiliate this afternoon - was how much emphasis they were placing on citizen journalism or CJ. Social ly integrating media output - participation of viewership in the shaping of events, highly time sensitive transport mediums (texting). The talking head was literally begging the viewership to ' text in your mobile video clips of what you saw'. And this is CNN! well its no atlanta i know that for sure. i found it truly fascinating to see a tragic event unfold through the eyes of hundreds of CJ's. CNN India was using its key distribution asset to allow indians to tell their own story. Ofcourse - this is of no significance in the face of the tragedy that these bent individuals have seen fit to impose on innocents. My thoughts are with all those who are going through tragic circumstances and hardship.

On Music of the week

2006-06-23T03:31:00.000-07:00

Well i bought 3 albums this week. My fiancee and I are in the process of selecting the music for are looming wedding, and we looked back over our 10 years together and found this gem. If you have not hear this before give it a go CHICANE A beautiful album - pity no others followed. The second album i bought was Keane's new one. Just starting to listen to it -- but for a sophmore album i am impressed from how much of a departure it is from hoeps and fears Finally, and again, on the wedding tip, i looked back and re-purchased Dzihan an Kamiens debut album called freaks and icons Beautiful down tempo, dark, moody stuff. I am going to try and do this every week so any suggestions for new stuff, wedding stuff, old classics and so on would be great.

ON plotting your location

2006-06-20T21:08:00.000-07:00

So i walk out of my house this morning, unusually early i might add.... (5am) and i see a van driving by with a microsoft logo and some sophisticated equipment mounted on its roof. I am assuming that it is copying what LOKI has done and is mapping wireless LANs, for its windows live effort. Anyone else seen this? very orwellian if you ask me

on my country's chances in the world cup

2006-06-15T20:23:00.000-07:00

out of nowhere post i know, but if you grew up english, and for that matter - pretty much any european - the World Cup means alot. Play steven gerrard in the defensive midfield role and we will lose. its quite unbelievable that our coach is asking him to do that.......

on the future of remixing and rebundling commercials

2006-05-25T10:51:00.000-07:00

this just came in from my brother who runs a branding agency in new york (shameless plug) Umair must absolutely love this. feels like my DJiing days all over again.

on exploding media continued

2006-05-25T10:39:00.000-07:00

Just read this I hear the pitter patter of feet coming from the southern californian hills heading nervously to traditional media HQ's to find that business as you know it, well, jumped the shark.

On Condi Rice and BC protestors at Commencement

2006-05-23T12:34:00.000-07:00

Lots of coverage of Condi Rice speaking at the BC commencement yesterday, including the resignation of one professor in an open letter to the Boston Globe. I just wish more of his colleagues would do this, and here's why. My youngest brother spent 4 years at BC, ending yesterday. He worked hard, double majored, made life long friends, learnt imeasurable life lessons, and on that wonderful day made two parents and countless family members and friends beam with pride - a richly deserved accomplishment for him and for all of us, and a day we will all treasure for life. Look at you, and look at your students. Your signs dont reflect their day. Not one sign is being held up by the body in view. thats because Its his day not yours. Your selfish act of misplaced protest belonged outside this forum where he and thousands of others take on the life responsibilities and privelidges of an educated person. Something not lost on Condi, clearly lost on you lot. This was not about politics or polarizing public figures - it was about thousands of people who were celebrating an achievement. They certainly weren't celebrating in your names.

On music - SNOW PATROL

2006-05-17T14:40:00.000-07:00

Coldpay, athlete, artic monkeys lovers - GO GET THE NEW SNOW PATROL ALBUM - EYES OPEN. I confidently predict that it will be an absolute monster. They are touring stateside in June too.

belgian talk show break down

2006-05-12T09:56:00.000-07:00

my brother is at it again. He has sent this video of a man who unfirtunately had his tesitcles removed during an operation, by mistake. The host is asking his wife how it has affected their sex life and the husband chimes in....... My dutch stepmother was in tears at breakfast.

Exploding television - sling media

2006-05-02T08:45:00.000-07:00

For those still wowed by the likes of TIVO and other DVRs get ready for the next whammy on traditional media models. Sling Media Well this article cover the latest in bath water throwing by owners of extinct media models. NEWSFLASH If you did not see it coming with Napster or bittorent and it was not drilled in to you with Tivo - then don't think that you can litigate your way in to protecting your broken model. Here's a hint - the control has shifted to the edge. learn about this concept, embrace it and prosper. or die a long, slow and painful death. I keep linking to this guy but a lesson from Umair would be $ well spent.

on Gnarls Barkley, myspace and the future of music distribution

2006-04-26T09:12:00.000-07:00

for those who have not heard of this phenomenon yet here is the video fo Gnarls Barkley from Top of the Pos in the UK last week:
Get this video and more at MySpace.com Its number 1 and has not been released - its number 1 because of Myspace, the network effect and because - well it deserves to be. This is the type of thing Munjal was referring to when he said the Wharton Professor was wrong.

on hedge funds, asset classes and becoming VCs

2006-04-25T20:35:00.000-07:00

Don't agree equityprivate - software deal size is diminishing - at least on the consumer side. 2.0 enteprise deals are yet to emerge. Either way - too much supply any way you slice it.

MBA's, NEW MEDIA and RIYA

2006-04-23T14:03:00.000-07:00

I like many other's who have more than a passing interest in new technologies have been eagerly trying to keep up with the RIYA developments. For those who Don't know, RIYA is a New Photo recognition and sharing service being built in SV. I have tried it (beta) and it jammed my machine on the upload - I unistalled and decided to wait until it is more stable for non techie's like me. The CEO of the company, Munjal Shah blogs about his CEO experience with RIYA. Its an interesting read - reccomended for Entrepreneurs. I found this quote by Munjal interesting. Munjal is speaking to an annual gathering of Wharton MBA's.

When all the MBAs and McKinsey consultants start leaving their jobs to come to the valley, you are in the middle of a bubble. We must just be in a bublet…;-). One question a 2nd year asks me is, “You keep talking about blogging but how does letting all your employees blog create a consistent message for your company. Our marketing teachers told us consistency of message is critical for success.” I respond by saying, “Your professor is wrong, as advanced readers/watchers of media we no longer believe anything that is too consistent and obviously your professor doesn’t get that markets are conversations.”

I agree - the professor is wrong. We are much more sophisticated media consumers. We have many screens (3) and channels by which to consume. We increasingly control what and how. We increasingly see through the fake. We increasingly appreciate the authentic before the consistent. For those who want a quick lesson on this set of emerging thoughts, i encourage you to visit with another very smart Indian Chap named Umair Haque. HIs work can be found at a very popular blog called Bubble Generation

Sitemeter

2006-04-20T11:19:00.000-07:00

please tell me you have heard of it. Why not ask Mr Kawasaki. oh dear, Equity is not so private.

Sarbanes and Private Capital

2006-04-20T09:31:00.000-07:00

My New Friend has written a very clear analysis of one of the reasons for the Private side bubble that we are all seeing. This graph is interesting: The rest of the post is a good read. I am still waiting for the next Kawasaki kawabunga ;)

The Grandfather of the Microchunk

2006-04-12T12:19:00.000-07:00

So much talk about micro media chunks, recontructs and the like i thought i'd ode to one of the true microchunk innovators. Is there a better piece of 30 second video out there than this? I intend to post this at least once a year - someone should create a widget that tracks an individuals 'guaranteed wheeze' microchunks for people to see.

chicken

2006-04-11T10:58:00.000-07:00

In my business, and in the business of instiutional investing - one is all too often tongue tied by some type of confidentiality / market restriction associated with a pending event. Well it was with absolute hysterics that i came across this TW*T In the most recent piece of verbals he once again singles out Guy Kawasaki for some side splitting abuse. Now i dont know guy from adam - had one conversation with him 2 years ago on a deal - and if he is plagarizing or thieving his material thats one thing - and i do cast a somewhat skeptic glance at VC's who take on teacher/student persona - the waft of 'holier than thow' is all too transparent in this day and age - but i am happy to say that publicly and in the same breath humbly as his achievements do - somewhat precede him - and i say those things only from my personal experiences, nothing else. But Guy will probably tell you he is attempting to provide genuine assistance to people who want what he has. this chap on the other hand, casts his view from a pulpit called private equity??? brilliant! you are the most perfect representation of a PE stereotype i know. Your not anonymous - you are 50% of the VP's at the MM buyout firms i deal with daily. In fact i was in your offices just yesterday.

IPOD and disasembling the DRM

2006-03-14T08:49:00.000-08:00

SO France is about to pass a law that makes it legal to hack the DRM associated with music purchased on I-Tunes. Fred must be happy about this. Its about time someone explained to Mr. Jobs that the IPOD platform will only continue to lead if it performs true gateway and not walled garden services. Vive la France.

NBC just gave its content away and it doesn't even know it

2006-03-10T13:02:00.000-08:00

NBC just gave away content without knowing it, and in the same breath espoused the authenticity of getting it from them as opposed to bloggers, you tube and the like. Well here it is - from the edge - oh the sweet irony Nice one Charlie - what muppets.

shock absorber

2006-03-08T05:17:00.000-08:00

Well my younger brother fills my inbox week in with the usual amusing drivel - this one happens to take the biscuit. for the more mature only i warn!

American Ports - part 2

2006-02-22T07:45:00.000-08:00

Its good to know that GW and the senate have taken my previous post under guidance ;) THis morning i saw a whitehose spokesman explain how security in these ports will still be jurisdicted by the coast guard, customs, and homeland security. You'd think that chuck and Hillary would do a little more homework before attempting to doomsday their way in to the headlines again. So we have danes who transport our military assets to war, UAE's owning our ports, what next? citibank? please - get grip.

American Ports

2006-02-21T08:53:00.000-08:00

My father just mentioned something rather telling.. With all this congressional palava over the P & O port deal, it might be worth pointing out the following: 1. The deal is complete, any reversal will involve major litigation. 2. They dont own the physical ports - just the assets within the ports - security is still the responsibility of the coast guard and DHS 3. 90% of all supplies for the war effort in the gulf are transported via a danish carrier. you know - that country that draws cartoons? the solution to the security problem (less than 7% of all existing boxes coming in to this country are even checked) does not reside with a UAE holding company purchasing business assets - It resides with a completely antiquated and broken Coast guard Port system and related customs infrastructure - the danger to this country is the idiots who preside over port security policy, those same idiots who report to you idiots in congress.

Shameless - the next TV show

2006-02-21T05:19:00.000-08:00

the next great TV show from the UK - get a clip here.....

ricky gervais is charging

2006-02-20T11:53:00.000-08:00

the world watches and waits as one of the modern days funnier people attempts to leverage his astounding success using the podcasting medium and build a business around it. Its been well known now for some time that the ricky gervais show podcast is the most popular show ever. i think i'm correct in saying millions of people have subscribed to the 12 epsisode first season. So it came as a suprise as i fired up the final episode today to hear that they are intending to continue this success - but will now be charging for it. $6.95 for 4 episodes. I am truly stuck as to whether i want to pay for that. Or do i force them to weave more ads in to the cast to pay for it? i am sure therer are many who will be fascinated to see how this goes. On a seperate note - Shameless is the newest dark comedy sensation for the UK - not for children but it is truly...well.... shameless.

VCs and NDAs

2006-02-15T08:26:00.000-08:00

there is alot of conversation this morning on why VCs typically wont sign an NDA - I have to agree with most of brad felds points - and fred wilson identifies the ultimate one "we dont have to". I'd like to take the discussion a step further and ask the VCs how the entrepreneur can protect against the VC community knowledge grabbing. The statement that a VC is looking at 3 or 4 deals of a similar type is largely bollox. Especially at the bleeding edge. What many VC's do is take a meeting to 'learn' about the sector / concept - with no or little apparent pre-determined investment intention. Why should the favorable negotiating position provided by the check book - extend the inbalance to knowledge theft? (theft may be a bit strong here) Few VCs will admit that they knowingly engage in this practice BTW. The reason is simple - the 'tip of the spear' is still capital - its not knowledge. Until there is a semblance of equality here, a VC has far bigger license to sit in a meeting under the pretext that he may invest, not sign an NDA, and 'pass' due to reason 1-10 of SOP VC handbook. The takeaway for the entrepreneur 1. Do your homework on who you meet with - study the background and investment history - probe in detail their knowledge of your concept early in the discussion, and ask why they are interested. Don't take comments like 'wow - this is like drinking from a firehose' - leave the room. 2. Dont just take any VC meeting because you get them. Too many entrepreneurs think that the solution to funding is volume of meetings - the solution to funding is finding the right investor period. you should be able to tell within 15 minutes whether there is a fit. 3. If you are not meeting with a partner, dont take the meeting. I don't care what any analyst or associate thinks - your path to getting the right ear just got too long and too distracting if a partner is not in the room. I have met with over 90 VC firms in the last 2 years and only once did i see a VC who was not a partner who had decision making or significantly influential mindshare on the process - his name was Bob Geiman from polaris and he was a principal (he's now a GP).

pictures of god

2006-02-08T10:58:00.000-08:00

the true farse of it all there are few adjectives to describe how completely absurd this situation is. And we hope to do what in iraq? please.

Play my pac man

2006-02-06T09:30:00.000-08:00

OK - a self confessed gamer - i recently found this nifty piece of work distracting 2.0 technologies - sound works too so mute before you play!

Ricky Gervais Podcast

2006-01-31T10:05:00.000-08:00

If you haven't listened and are a fan of the office (the brit version) and of extras, then this is a must listen. Their podcast has now been downloaded a stagerring 4 million times - eclipsing the second most popular podcast by - literally millions. We all have a karl in our lives!

2006-01-31T09:36:00.000-08:00

With all the talk about the potential 'disruption' of the VC business i thought i'd add a couple of anecdotes given my experiences. A VC: Don't Be An ATM Is a pretty good take on the discussion. Although Freds final comment is a bit obvious and can apply to many situations beyond this particular one, i can vouch personally for the value that one Venture Capitalist can bring over another. I have met Studs and Duds from all the firms - Duds at Bessemer, Studs at polaris and the reverse. It all comes down to personalities - strip away the $$$ and the Academic qualifications - is this person gonna be with you at the first hurdle, or clawing back the moment you slip up? From an Industry perspective, and i see it with the private equity guys more than ever - there is a tremendous amount of secured and available capital in the private Equity asset class - alot of this is due to the SOX fallout, and the attempt to create pockets of liquid markets privately. If you listen to Swartzman of blackstone - he's off raising the first $22 billion dollar fund! what's happening in more abundance is buyout firms selling to buyout firms - liquidity behind the curtain - free from the constraints, costs, and challenges associated with a re-configured SOX induced public market. Why deal with SOX when we can trade amongst ourselves, take advantage of debt market fluctuations, sophisticated financial engineering, and so on? Moores law could have told us all that we can build twice as much for half the price - and maybe there are elements of this in the VC market today, but there will always be capital, there will always be investment professionals seeking to manage, and there will always be demand - at what point in a company lifecycle is capital required? what is the currency used? these are constantly shifting challenges. VC as a business is not going anywhere - change? sure. Disruption? minor. An abudance of very smart people guiding this boat? definitely.

the hedge fund bubble

2006-01-25T05:38:00.000-08:00

So it may come as no suprise to most of you that the now hyper competitive hedge fund market is in my personal view giving off some mildly distrubing signals. I find it far easier to write about my reactions to things that i actually experience first hand, rather than commentary second or third - this is one of those. For some time now, the hedge fund bobble heads have been tearing around the private equity markets directly competing with the banks to pony up the debt side of buy-outs and such. A departure from what i would typically define a hedge funds investment thesis to be - but not suprising given the inequality of capital supply and demand. The banks ofcourse cry foul - claiming that the hedge fund approach to debt issuance is cavalier, adding risk parameters to the market that are 'unhealthy' and so on. I have been working on one such transaction that involves hedge fund debt. They are very agressive. It got me thinking. If one assumes that the risk profile of said debt market has changed as a result of hedge fund incursions, and hedge funds are still feeling the pinch on deployment of capital, where else will they look next? thats right, Equity. How far can they go? can they venture? My dealings would not really expose me to this type of activity but is it a reasonable suposition that entrepreneurs should be prospecting these hedge funds? are the traditional VCs seeing competition? What ever the case, and or the possibility, the hedge fund sheep has strayed from its flock and it is only a matter of time before the wolves come for dinner.

Hard-fi

2006-01-11T08:00:00.000-08:00

A great band - Hard-fi are sneaking in to the US for a few dates this month and they are simply not to be missed. they play boston on Monday the 16th and NYC on the tuesday. more details go to hard-fi I am getting back from london that night and will be going straight there.

Ennis Knupp

2006-01-06T10:36:00.000-08:00

Today is a big day for venture capital and private equity. Today is - in my recollection - the first day that an investor in this category (either venture or private equity funds) has decided to release the performance of its investments in these funds - of which there are 54. This information has historically been kept very private for reasons i will go in to shortly. For those less informed than i, here is how this works. The funds that fuel innovation in the valley, or leveraged buyouts in the big apple, take on one distinct corporate entity. that of a Limited Partnership or L.P. With each fund formed (for instance sequoia might be on fund 12 or LP 12) a corporate vehicle is formed (LP) in to which investors place their capital. When VC superman 1 wants to invest in the next Google - he acquires the consent of his investment colleagues or general partnership (the monday morning meetings!) after which they execute a 'capital call' to the LP for the required money. All pretty simple really - and as a note - most if not all LPs require the personal capital of the general partnership (the VCs) to invest alongside. The company recieving the capital is valued at a pre and post money number (specifics on arriving at this methodology will we touched on in another blog) that $$ number is then assigned to the venture portfolio for tracking. Sufice it to say - the number is an art not a science and less relevant than the opportunity to BUILD the value. Now the vast majority of investors in the LP vehicles are public, state pension systems, university endowments and the such. These systems have a portfolio of investments that cover all types of risk categories - public equities, private equities, debt and so on - So now comes the interesting part. The Ohio Bureau of Workers compensation has decided - in its infinite wisdom - to divulge the intricate details of its private equity portfolio - this includes IRRs for each fund, valuation for each portfolio company - VC methods of valuing such companies and so on. OUCH i hear from the general partners!!! So to all you entrepreneurs who are seeking the capital, and would like to find out how the fund you are talking to is doing - here you go 3 concluding points: 1. I frankly dont see the merits of this approach - i dont see who benefits from this type of disclosure - certainly not the entrepreneur. 2. I am accutely interested in the view point of certain VC's on this. I hope we all see alot of commentary over the next few days. 3. Someone stop Daniel Primack from dragging the Private equity world in to some sort of people magazine gutter. His comments on this development were absolutely hilarious. He complained that Fred Wilson was blogging too much recently. Well (in the word of cartman) 'news flash tom brokaw!' Fred's readership is bigger than yours now, and he does it for fun.

the internets darkening cloud

2006-01-06T09:33:00.000-08:00

are telecoms about to toll the networks? this is becoming an increasingly legitimate question given statements from both eisenberg (verizon) and ed whiteacre (att). the article in todays WSJ does some good work on covering this issue. Are telecoms going to toll consumers based upon what they are using the internet for? My good friend Hass is a bandwidth sucking F5 vortex compared to me - if you were to look at our use per month, i am sure this would be the case. So in theory - one could at least discuss the concept of him paying a premium compared to others - i say in theory because the harder question is how one measures this - not by what bandwidth is used - but by what it is used for. Discriminating against content providers could be a very sticky business. Can we innovate our way arround these telecom toll booths that are being lobbied for right now?

NSA and cookies

2005-12-30T10:07:00.000-08:00

absolutely ridiculous i cry. I just watched a CNN piece in the NSA website and cookies coupled with orwellian statements of big brother and attempting to associate this 'recent finding' with the phone tapping issue. Seems that Jeff Jarvis saw this too Whats funny is to read some of the responses by Scote - he should be lokced up with all those who fail to uderstand how much of an absolute non-story this really is. The urge for politicizing the issue aside -on a pure tech basis - i beg someone to tell how the NSA cookie is so 'threatening' after all - its not 3rd party. Far too much credit given to the NSA here.

Squidoo

2005-12-28T08:08:00.000-08:00

well i have now had a little time to fiddle with squidoo and frankly dont see the point. It seems that the point here is to re-organize and re-present 2.0 based content, in a way that ranks and compensates against relative readership 'value'. First off, mainstream will not get this. They (we)dont get blogging, RSS, Feeds, Social bookmarks, or tagging - how the hell we they (we) get this? Second - what is the real real value here? I looked at the top 50 lenses and frankly found nothing that i dont currently subscribe to, or find more simply using other methods. Ok, the adsense thingy is so so - been there and done that - and the bookmarking functionality is neat (i bookmark what i like and it registers with my lens) but this is old news too - and used much more cleverly with services like last.fm . Someone please enlighten me as i don't see the mass market eureka here.

Let the games begin

2005-12-20T08:23:00.000-08:00

this morning, Bill Burnham wrote a great piec e about the impact the likes of google base will have on the the remaining walled-garden internet businesses today. The race has until now been - i have the content, and will charge you to access it. The race will very soon be - we all have the access to the content, we are now going to pay for what we decide to do with it.

KISS - lessons, lessons.

2005-12-16T10:07:00.000-08:00

So Michael Parekh's recent Blog about the post yahoo / delicious merger and acquisiton world is a very important read, and not because of the arguments and complexities associated with who the next target should be. Michael again touches on what i also believe to be the governing premise or driver behind where the GYMAAAE's should be looking. I'll put it in far more 'layman like' terms than michaels argument (which by the way is spot on and relates to the battle for'presentation and navigation' in the web new.0 world) In 1992 i was but a college freshman (in boston) with a taste for a lager and a distracting hobby for computers. My dorm room mate and I were connecting to the 'world wide web' using a service called the world Command line drive PPP session initiation, rudimentary browsing capabilities, got us to a plethora highly active user groups - technologists and the such, sharing, discussing and creating what we have now all come to know as the internet. The community felt special, protected, unique. The collective view of unbridled excitement, vast horizons of opportuninty coined in our very own 'irrational exuberance' not experienced here since the guilded age some 100 years ago, was one day broken by steve case. Like it or not AOL drove mass adoption of these precious technologies - making sense of the web to millions upon millions world wide. they did it by taking the guess work out of the paradigm, dumbing down complex communication protocols and user interfaces all perfectly captured in the three word phrase that we have all come to know (and mostly despise). What did they do? they solved the problem of 'presentation and navigation'. A problem solved mind, by a small company in redmond 10 years before. Without causing you all coffee spills with nightmares of hearing "you've got blog' or 'your mother has posted your baby picture' - the battle for the keys to the mass market resides with the company that solves the challenge of navigating and presenting this new frontier. 'The World' thumbed their noses at the CDs arrving attached to magazines in the mail. look at their homepage today.

Badly behaved VC - series 2

2005-12-13T13:23:00.000-08:00

I am attempting to keep track of bad behaviour by venture capitalists as and when my work day causes me to be exposed to such an instance. Today was one. Pre and Post option pool scams. Yes - i am now convinced that they are not sophisticated negotiating postures, they are scams. They are scams because they create a shift in control from the entrepreneur to the investor, through employment agreement rights, firing for cause, and so on. The age-old - 'we need a seasoned executive to take this to the next level' is often times a lie. It should read 'we will dump you the entrepreneur and replace you with 'friendly to us MBA XYZ', your options that have not vested will be given to him / her, and we the investors won't get diluted' - Eureka. Term sheet particulars such as this need to be exposed, so that abstract permutations that an entrepreneur can't possibly see in these clauses are explained in the real light under which they are created. the 'we are the entrepreneurs VC' mantra should be the first red flag. If a VC has more fear than greed built in to his / her assesment of an investment, buy debt. Dont try and build a company.

Brother, Sister

2005-12-13T13:04:00.000-08:00

Brother, Sister
Originally uploaded by markgslater.

Spent some time organizing my photos today and again trying to figure out what all the fuss is about with Flickr - and Delicious - for that matter. There is Absolutely no way that the mainstream internet will adopt either - i guess that explains why they have both sold.

Yahoo continues to take on the 'dumb it down' responsibilities for cool technologies who have completely missed the mark on UI's for the mass market. these two tools are simply not easy enough to use.

And seriously - why is Flickr still in beta?

My younger brother and our sister-in-law at the restaurant in maine this summer.

great athlete

2005-12-11T01:22:00.000-08:00

Athlete - a band from where i grew up in london, a little melancholy, but a very moving listen on headphones. listen to wired. the singers mother in a car accident - a tremendous lyrical journey through the emotions one feels when THAT phone call comes in. I've experienced it, this bands words capture it. Expecting great things from these young fellas.

private equity wikipedia

2005-12-09T09:08:00.000-08:00

every industry has its idiosyncratic sayisms and private equity - the industry that i touch reasonably often - is guilty as charged. I have too many of these to count, but in the hopes of peeling an onion layer off an all too often insular and elitist industry, here goes: Re-trade(N) - When a private equity bidder, re-prices the offer after his initial bid is accepted, and immediately prior to the execution of the merger agreement.

Answer this

2005-12-09T08:24:00.000-08:00

Lots of talk on 2.0 answer technologies this week. I actually mentioned this several weeks ago in a post below i dont want to say any more about that project as the entrepreneur has asked for an element of confidentiality. Suffice it to say, their approach is very strong. I am a big fan of usability, make it really dumb so that i can show it to my father in 20 seconds or less. Remember shazam anyone? Well i have been a big fan of this service - its called 82 ask. The best measure of a this technology is to go and sit in a pub in london, ask for a pint of pride, get in a heated discussion about total minutae, disagree on the correct answer, and make a wager on the outcome using 82 ask! Again reminds me of the shazam days in london, but this really is helpful. Have wanted to bring this service here for a while. The mobile-illiterate US probably wont get it though, and i need the business model explained to me in more detail.

john doerr - too short

2005-12-01T21:51:00.000-08:00

For those not versed, this individual is very much a thought leader in all that we do. someone get a better and longer interview please. john doerr on tomorrow

new and old world widgets

2005-12-01T08:59:00.000-08:00

It struck me in a conversation with my fiancee last night that a key measurement of todays technology (2.0) excitement and that of my days in 99 are containment (or the lack of!). Is there enough focus on pragmatic fundamentals, and real commercial mass appeal this time around? As an employee of a very large razor company in boston, she plays a key part on the supply and delivery of the most insignificant of things on a razor (man or woman). the release button that allows one to change the blade! ofcourse we are talking billions and billions a year and to anyone well versed in production planning and supply chain management (which i am not) the importance of synchronized widget production is the old world version of a 5 9's type business performance requirement. When i look at the web 2.0 world, i am struck by a very simple difference here. She worries about the button so that you and i don't even register its importance. Its there, it works we use it daily, never seen it break etc. the web 2.0 comparison is a buton that comes in a kit, has completely unitelligle instructions and has little apparent value (and i use apparent carefully here) to the mass market. i mean what is the goverining context of 2.0 that will turn on the light bulb to your average web user? and are the bleeding edge innovators of this new world doing enough to really drive mass adoption. Who is going to take the pain out of installing learning about and ultimately using these tools?

Base google palava

2005-11-17T03:56:00.000-08:00

huge amount this morning on the base.google release. For the mainstream (of which i am most definitely one), base.google is the incumbent approach to the apex of search and consumer driven content. Googles answer to relevance in the contextual web era. Whatever the bleeding edge jury is saying about this, i am most certainly still learning about the case. What peaked my curiosity is that i recently had some correspondence with some Sloan folks about their project. Their contention was that the power of community, reccomendations, trust and ultimately meaningful value to the enquirer resides in the micro-community approach rather than the much more annonymous, amazonian index the entire webs opinion approach. the concept attempts to match the most approapriate answerer with the query - doing so by leveraging micro user communitites. best read on base google so far is here....much more to come i am sure.

Good VC - Version 1

2005-11-16T11:35:00.000-08:00

Well its not all doom and gloom in the VC world after all. In stark contrast to my rambling below, we recently spent some time with the Union Square Ventures folks and came away with a very positive opinion. I just read Freds 'who is the VC's customer' post and thought i'd add that his rambling on the challenge is really how his firm approaches the entrepreneur. Candid, helpful, and informed. Entrepreneurs should not be scared of these folks.

2005-10-22T15:33:00.000-07:00

This is a picture of my precious little niece Sophie on the beach in Kennebunkport - summer 2005

Badly behaved VC - Volume number 1

2005-10-19T09:03:00.000-07:00

As an M & A guy and a former employee of one of the largest 1999 era technology venture capitalists, i was perplexed (to say the least) at the actions of a certain East coast based (small) wireless focused venture firm yesterday. I have been lucky enough in my career to have participated in the founding of several companies. As a supporting COO/CFO type in the founding process , i have witnessed the activities and efforts of several entrepreneurs from a truly fascinating viewpoint. I have also been privy to several instances where the behaviour of the financing party (the VC) has been a true dis-service to the entrepreneur. One such instance occured yesterday and has caused me to write about it. Before I do, i would like to stress that competitive, disruptive and sometime unethical practices are more commonplace in the M & A world, in our most recent transaction where we sold a $180m business, several private equity firms were engaged in 'questionable' practices in attempts to secure leading positions. These actions - at least in my view - seem more acceptable than those which i will explain in the Venture world The company in question is a very promising wireless start-up that was seeking a series A funding round of several million. (we were not acting as agent BTW, co-founder and advisor - word to entrpreneurs - if you are raising less than $10m dont get an agent (bank etc) VCs don't like this at all) Several indications from prominent firms were received, and after much deliberation with advisors, angels and the like, the company chose the firm in question primarily on various compatability leverage points (geography, domain expertise, portfolio synergy etc) and most importantly on a stated eagerness to, likelyhood of, and time required for close. The term sheet was thus signed in July. As a start up, it is extremely difficult to keep options open once this occurs - resource deficiencies, no shop clauses, and so on prevent such - nearly every entrepreneur essentially puts all eggs in the basket of the firm that it chooses - and this is the first point of unspoken accountability that a VC must recognise when securing a start-ups comittment. The next 45 days were an intense period of due diligence, document exchanges, employee agreements etc etc etc followed by a closing period of about 2 weeks. The very day before the money was escrowed, the VC took an abrupt U-turn on several issues that it claimed it was not aware of - and that were fully disclosed in the private placement memorandum issued to them prior to signing the term sheet. We were then forced in to a day and night scramble to meet their new requirements - ones that we would have dealt with months before if we would have known that they were to become an issue. For instance - they required that we permanently hire a consultant that was working on the development of a new product for us. Whatsmore the shares were not to come from the post funding option pool. Suffice-it to say, $100k in legal fees later the deal imploded. Now i don't wish to finger point at this funds actions - this may well be how they operate and without breaking any laws per se, this wont be a fund i would ever choose to approach, reccomend or deal with again. But the real fallout is the entrepreneur. This CEO lost about 4 months in a redundant, distracting, and ultimately highly frustrating practice. a major impact on chances of success given the precious resources available to a company of this type, and at this stage. Far more impact than that suffered by the firm. The only plus from this, is that the company is prepared, bound, and VC quality transparent. In conclusion, the position a VC holds when engaging with an entrepreneur is by its nature one sided. Sure, there can be some back and fourth on pre-money, option pool allocations, non-competes, and so on - but the tip of the spear is the fuel needed to create the opportunity. As holders of that spear, it is encumbent upon VC's to be good, really good in their deal assesments - because while you might view 20 companies a year and think nothing of it, it might be that entrepreneurs opportunity of a lifetime. Its ofcourse ok to pass - happens all the time, everyday - i've learnt that entrepreneurs are big 'boys' they can take bad news - what they, we and the industry cant continue to tolerate is bad work resulting in loss of opportunity. my 2 cents - would welcome feedback