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  1. #1
    NeeJam is offline YE Veteran
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    Is The "Traditional Venture Capital Model" Broken?

    When reading "A VC" a blog by Fred Wilson.

    Whom some of you may or may not know about, he was the guy who was an investor in feedburner and del.icio.us and is a partner in union square ventures.

    Well i was reading his blog and i came across this blog post argueable his best know post - http://avc.blogs.com/a_vc/2006/10/is_the_traditio.html

    So i just thought you should all have a read of it

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  2. #2
    CP Mr Ofevaw is offline Senior Member
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    "Robert Dewey" seems to have a pretty good comment ;-)

    I also received an e-mail from Fred regarding that one... Heh

  3. #3
    NeeJam is offline YE Veteran
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    Quote Originally Posted by CP Mr Ofevaw
    "Robert Dewey" seems to have a pretty good comment ;-)

    I also received an e-mail from Fred regarding that one... Heh
    i agree with his comment, i can't see how these startups need so much money to develop/create their sites and most of their promotions is done via the use of word-of-mouth.

    Look at digg for example they are developing their services and have got $8.5million from the first round of funding to develop/improve their services and add additional features. I mean their services can be made for minimal cost by web developers who will be willing to do this, as it iwll benefit them saying, "i developed X on digg or whatever"

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