$100 million for your ideas
CNNMoney.com details 20 Smart Companies to Start Now, a compendium of start-up opprtunities that major VCs are looking to fund.
Howard Schultz, Steve Case, Vinod Khosla, and other major investors are sharing their best startup ideas. And they're willing to give a collective $100 Million to the entrepreneurs who can make them happen.
Sounds like fun and flies in the face of Sevin Rosen's decision not to raise Funx X (their tenth fund) because, as the NYTimes reports, “The traditional venture model seems to us to be broken,” Steve Dow, a general partner at Sevin Rosen Funds, said in an interview.
Fred gets all the credit for spotting the piece on Rosen, and his reply and retort is excellent:
We need a new approach to the kind of companies we fund and we need a new approach to how we fund them and how we get out of them. I don't see that as a "broken model", just a model that we need to tweak. The answers are pretty obvious actually.
We've got to raise smaller funds.
We've got to do less "hard tech" and more "soft tech"
We've got to figure out how to make great returns on $100mm to $250mm exits
We've got to limit our IPOs to our very best companies
Compared to the madness of the 90s and the sh*t that VCs shoveled into the market, that kind of thinking is a breath of fresh air.
Technorati Tags: startups, vc, business.models
Saturday, October 07, 2006
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