Is The "Traditional Venture Capital Model" Broken?

**NeeJam** · 12-30-2006 07:23 PM

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

**CP Mr Ofevaw** · 12-30-2006 07:30 PM

"Robert Dewey" seems to have a pretty good comment ;-)

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

**NeeJam** · 12-31-2006 04:34 PM

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"