Entrepreneurial

The coming brick wall in venture capital

– Mark Suster is a former serial entrepreneur and a partner at Los Angeles-based venture capital firm GRP Partners. This article originally appeared on Suster’s blog “Both Sides of the Table”. The views expressed are his own. –

This is the final part of a three-part series on the major changes in the structure of the software and the venture capital industries. Read Part One and Part Two.

Or the Cliff Note’s version:

    Open source and cloud computing (led by Amazon) drove down tech startup costs by 90 percent The result was a massive increase in startups and a whole group of new funding sources: both angels and “micro VCs” With more competition in early-stage many VCs are investing smaller amounts at earlier stages. Some are going later stage to not miss out on hot deals. I call this “stage drift.” The opportunities for tech startups today are more immense than they’ve ever been with billions of people now connected to the Internet nearly all the time.

But …

Downsizing Venture Capital

The venture capital business itself is going through an even more fundamental change than just the entry of a new category at the earliest stage. The industry is shrinking back to a mid-90′s level in terms of both dollars and numbers of firms.

The doubling of the industry size was caused by the euphoria of the dot-com bubble and since funds take 10 years or more to dissolve the bursting of the funding bubble has taken its time. We all know the result of the over-funding of the asset class – poor returns in aggregate for the industry. The best firms have still delivered results, though.

The rise of “micro VCs”

– Mark Suster is a former serial entrepreneur and a partner at Los Angeles-based venture capital firm GRP Partners. This article originally appeared on Suster’s blog “Both Sides of the Table”. The views expressed are his own. –

This is the second in a three-part series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. Read Part 1 here.

If you don’t want to read that post, the summary is:

    Open source computing drove computing costs down 90 percent, which spurred innovation in technology Open cloud led by Amazon with their AWS services drove total operating costs down by 90 percent. This led to an explosion in startups. Amazon in turn led to the formation of an earlier stage of venture capital now led by what I call “micro VCs” who typically invest $250,000 to 500,000 in companies rather than the $5 to $7 million that VCs used to invest.

These trends have put pressure on traditional VCs. Some have done earlier-stage deals and done well. Others have chased earlier-stage but lack the skills or relationships to do this effectively. Some have moved into later stage investments in an effort to “put logos on their websites.”

How the cloud changed venture capitalism

– Mark Suster is a former serial entrepreneur and a partner at Los Angeles-based venture capital firm GRP Partners. This article originally appeared on Suster’s blog “Both Sides of the Table”. The views expressed are his own. –

In this three-part series I will explore the ways that the venture capital industry has changed over the past five years that I would argue are a direct result of changes in the software industry, not the other way around. Specifically, Amazon has changed our entire industry in profound ways often not attributed strongly enough to them.

I believe the changes to the industry will be lasting rather than temporal change. Venture capital is in the process of its own creative destruction with new market entrants and new models of innovation at the precise moment that our industry itself is contracting.

The cloud is not just about storage

cindy bates– Cindy Bates is vice president of Microsoft’s U.S. SMB organization where she is responsible for the company’s end-to-end SMB sales and marketing efforts. The views expressed are her own. –

Have you ever owned something that you didn’t use to its full potential? Perhaps you have a four-wheel drive vehicle that you’ve never taken off the city streets or a digital camera you didn’t know had video capabilities.

The same phenomenon can occur with technology. Take cloud computing, for instance. By now, most small and mid-sized business (SMB) decision makers know they can use the cloud for storage. Hosts of online service providers offer space in the cloud to safely backup business data, and scores of SMBs are taking advantage of this cost-effective way to store data.

Cloud technology lifts “accidental” entrepreneur

– Cindy Bates is vice president of Microsoft’s U.S. SMB organization where she is responsible for the company’s end-to-end SMB sales and marketing efforts. The views expressed are her own. –

Recovery from the recession has been frustratingly slow for many whose jobs disappeared as companies shrank or even vanished.  Many have decided to take the plunge and start their own businesses.

This generation of business executives has become known as “accidental entrepreneurs.”  But a recent Microsoft survey discovered their ability to launch and succeed in a business was no accident – it was made possible to a great extent by technology.

from The Great Debate UK:

The future of computing is in the cloud

pierslinney-Piers Linney is a self made entrepreneur and former City investment banker. He is currently Joint-Chief Executive Officer at Outsourcery, a leading communications and hosted IT company. The opinions expressed are his own.-

"Cloud computing" can sound like a very amorphous concept, perhaps even conjuring up images of important business data floating around in the skies above us. It often raises questions about control and security. But the reality is a lot more down to earth and it is quite simply the future of computing and the way in which businesses will consume pooled resources of software and hardware.

It is not a technology that is on the way or in "beta testing". Cloud computing uses tried and tested software that is just delivered in a new way. It is already empowering thousands of small and medium-sized enterprises (SMEs) in the UK while saving them money, increasing productivity and allowing them to get on with running their business instead of their IT.

Seattle startup looks for customers in the cloud

newlineWhat would happen if your laptop was lost, stolen or accidentally dropped in a pool? Would you be able to easily retrieve all the megabytes of precious content housed in its memory banks?

These are the questions that drove Seattle software developer Kory Gill to leave an almost 20-year career at Microsoft and start his own online data-storage company. For years, Gill has sought a Web-based storage solution that would safeguard his priceless family photos, home movies and other important digital data, but never found a single solution that addressed all his specific needs.

“If these are irreplaceable files, you need to have the same type of insurance for your data as you would of any other asset, like your home or car,” said Gill, who often shared his frustrations with friend and fellow Microsoft programmer Marius Nita.

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