Posts from VC & Technology

Triangulating For Insight

I am a huge fan of triangulating. I don’t think anyone or anything can give you the insight you need to truly understand things. Whether it’s visiting comscore, compete, alexa, hitwise, and quantcast to get a more complete picture of a web service’s usage, or reading a conservative oped page and a liberal oped page to get a broader view of a political issue, or reading a wide array of tech blogs to make sense of the microsoft/yahoo breakup, triangulating is the best way I know to break the logjam in my mind and get to insight.

I’ve been subconsciously triangulating three posts for the past couple weeks;

1) Jeff Nolan’s rant on incrementalism and the new thing:

As I survey the landscape of consumer and business focused software and
service providers I am struck by how much incrementalism there is at
the moment.

2) Tim O’Reilly’s keynote at Web 2.0:

At the end he recites a poem called The Man Watching by Rainer Maria Rilke which contains this line

When we win it’s with small things

3) Dave Winer’s post on a decentralized Twitter in which he states:

I always work in bootstrapping mode, addressing the first big issue,
solving the problem, then advancing to the next one. It’s why so many
of the ideas I’ve worked on have become popular modes of communication.
Big-bang approaches always fail. I’ve spent decades arguing with people
who want to reinvent the world in one stroke. They always try anyway
and always fail.
Bootstrapping is the only way that works.

Jeff is right, the web/tech world is full of incrementalism right now and that’s why I am so bullish on  the sector and our portfolio which is stock full of incrementalism.

Tim makes a passionate argument for "tackling big hard problems" in his keynote. But Dave is correct in his assertion that the best way to do that is one step at a time.

Think about the way Linux was built and continues to be built. One step at a time. Each one looks trivial. Taken together it’s awesome. Same with wikipedia. Or a social net like Facebook. Or the web itself.

We’re rapdily reaching the adulthood of the web in a sense. The business architecture of the net now mirrors it’s technical architecture. Massively distributed nodes that collectively create immense value, but if any one fails, nobody notices. Of course, it’s not entirely true. If Google went down, or even S3, we’d be unhappy campers. But DNA of the web was set a long time ago and there’s no fighting it. It’s a sustainable network built on the principles of massive redundancy and no central choke point.

And because of that, at least on the web, if you want to tackle hard problems you are going to need to do it collectively and in bite sizes. We are not in an incremental phase. We are in an incremental system.

#VC & Technology

A Blast From The Past Quiz

Brad Feld posted a picture of him and a friend at MIT when he was 19 on his blog last week along with a quiz question. The minute I saw that photo, I thought "I should post the picture of us from Harvard Square in 1996." So here it is:

Fredpic

So here’s the quiz. Name all six people in this photo. Hint: Five are active VCs and one is a retired VC.

The one rule is that nobody in the photo can participate in the quiz.

Extra credit – who is on the cover of Business Week in the magazine stand we are all standing next to?

#VC & Technology

The CBS Digital Radio Network

Yesterday I attended a launch event that really impressed me. As I watched it, I sent this twitter message:


   
      Watching a killer presentation on the cbs digital radio network. These guys have nailed it

I got a bunch of replies asking for more, but I’ve been offline for most of the past 24 hours and couldn’t get around to posting about it.

Paid Content has a post on the event that does a good job of "play by play". But it really doesn’t capture what went down.

Ad Age did a slightly better job with their coverage, but also missed the big point.

And that point is this. CBS has launched a single flash player that showcases all of their terrestrial stations’ internet streams, all of their internet radio streams (like the new WNEW), all of AOL’s internet stations (which CBS now operates for AOL), and best of all allows the listener to create their own custom radio stations that are also available on the player.

Cbs_radio_player

And that flash player can be launched whenever you visit a CBS radio station’s website, whenever you play an AOL radio station, and whenever you play a custom station you or your friends create using the new CBS digital radio network.

Think about this. They have rolled out the entire spectrum of what radio might be on one single player. You want to listen to WFAN? You can do it on the player. You want to listen to AOL’s indie rock stream? You can do it on the player. You want to create and listen your own station? You can do that on the player. I suspect it won’t be long before you can listen to any last.fm stream on that player too.

And here’s what really got me. When all of this audio content is being delivered in a single network, CBS can move you around the network when it makes sense. If you are listening to the AOL indie rock stream and Wilco is playing in the WXRT studio, the CBS digital radio network can alert you in the AOL stream and give you one click access to the Wilco live performance.

As my friend David Goodman explained, when the next Eliot Spitzer moment happens, you can go from the wonderful WNEW stream to 1010 WINS to get the news and then go back, all in a single state of the art flash player.

As I said in my twitter, these guys have nailed it.

#VC & Technology

What is this? [o:p][/o:p][/span]

I have no idea what those strings of HTML code do or mean (and I substituted [ for <), but they messed up my feed for the past couple days.

They got into my feed because I cut and pasted some text from microsoft entourage.

When I decided to figure out what was wrong with my feed, the clue was "did you edit your posts in MS Word?"

I learned a long time ago not to do that.

Now I know to avoid all Microsoft software when it comes to publishing on the web.

#VC & Technology

Distributed Polling

The poll I did yesterday on Yahoo!’s closing price has been taken almost 2,200 times in about a day. How did it get so many takers? By being distributed on many blogs at the same time. The poll has a share tab with embed code and I asked my readers to embed it on their blogs. And I left comments on some of the most popular blogs suggesting they do so. As of this morning here’s the list of blogs that picked up the poll code and reposted it.

http://blog.hubdub.com/2008/05/05/what-price-will-yahoo-close-at-on-monday-may-5th/

http://gigaom.com/
http://gigaom.com/2008/05/03/microsoft-yahoo-bid-over/
http://hexia.net/frettavefur/technology

http://laurent.pierssens.com/2008/05/04/microsoft-walks-how-low-will-yahoo-close-tomorrow/

http://mp.blogs.com/

http://seekingalpha.com/article/75643-where-will-yahoo-close-today

http://www.alleyinsider.com/

http://www.alleyinsider.com/2008/5/play_the_where_will_yahoo_s_stock_go_now_game_yhoo_

http://www.collierclan.net/mark/index.php/2008/05/04/yhoo-stock-price-poll/
http://www.contentmatters.info/

http://www.contentmatters.info/content_matters/2008/05/microsoft-ends.html

http://www.stoweboyd.com/message

http://davemartin.blogspot.com/2008/05/if-all-else-fails-immortality-can.html
http://www.buzzya.com/2008/05/04/microsoft-to-yahoo-take-a-hike/
http://mojo-ramblings.blogspot.com/2008/05/microsoft-and-yahoo.html

http://amaappendagy.blogspot.com/2008/05/spliced-feed-for-social-media_04.html

http://technology.nuovoportale.com/microsoft-to-yahoo-take-a-hike/
http://swik.net/Technology-News/GigaOm/Microsoft+to+Yahoo:+Take+a+Hike!/b4tv2
http://nobosh.com/s/play-the-where-will-yahoos-stock-go-now-game-yhoo/57824/

http://www.mybloglog.com/buzz/members/fredwilson/newwith/me/?eid=1209917398_17_48186561

http://aware11.com/play-the-where-will-yahoos-stock-go-now-game-yhoo/

I love this concept. We can work together to figure stuff out. Instead of each of us hosting a small poll on our blogs, we can collaborate on one large one.

As for whether the poll was accurate, too soon to know. The wisdom of the crowd was around $22/share this morning before the market open. So I lobbed in a limit order before the market opened at $22 for the day. As of now, that order has not been filled.

We’ll see if the stock gets to my $26 prediction. As of now, it’s approaching $25. So much for the wisdom of crowds I guess.

#VC & Technology

Where Will YHOO Close Today?

I put up a poll on this blog yesterday and a number of other blogs picked it up or linked to it. The net result was about 1,800 responses as of 6am eastern this morning. You can track the responses (and the number of them) at this poll result page.

The wisdom of the crowd is the closing price today will be $22. I took the percent of vote at each price level and then multiplied them out to get that expected value. Here’s the distribution of votes:

Yhoo_closing_price

The look of this chart tells me that I should have let people vote for some lower prices and that $16 vote was chosen by a number of people who would have voted for lower prices. That would have brought down the expected price, but not by much.

So if my poll is correct, YHOO will be down almost 25% today and I suspect the biggest drop will be in the morning. That’s $8bn of market cap lost.

As most of you know, I think Yahoo! made the right choice by walking away from Microsoft’s bid. I think it was a wakeup call and they can and will deal with much of what ails them.

Yahoo! had about $2bn of EBITDA in 2007 before you add stock based comp charges. At $32bn ($22/share), Yahoo! will trade at 16x EBITDA and that’s not including the impact of their cash, their Yahoo! Japan stake, and their Alibaba stake which together add up to $14bn of value or $10/share. If you back that out, Yahoo!’s a bargain at $22/share.

So if it gets there today, I’ll be buying some. I still think it ends the day at $26/share, which was my vote that kicked off the poll.

#stocks#VC & Technology

Ask For The Order

Words of wisdom from Steve Kane (actually Steve’s dad):

btw, the best advice my old man gave, and the advice he drilled most emphatically and repeatedly was, ASK FOR THE ORDER. you’d be amzed how many people talk to customers forever and never actually say ask for the order…

I saw Steve’s comment right after I read a long email from an entrepreneur (way too long, emails should be no more than three paragraphs) that went on and on about his business but never once asked us to consider an investment.

Ask for the order.

#VC & Technology

Listening To Your Customers Is Hard

My partner Albert says:

In building a business it’s generally considered a good idea to listen
to your customers…  As it
turns out though, listening to customers is a lot easier said than done.

And then he goes on to explain why that is so and what you can do about it.

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