VC á la carte by Jonas

Alex Iskold over at the Read/Write web has put together a nice table of VC companies, their investments (primarily in web 2.0 companies), the Alexa rank of the companies invested in as well as the rank at Technorati of the VC’s blog. Which I think is a nice fact resource for companies that are interested in VC and also maybe the new web movement or web 2.0 if you prefer that term.

As one of the comments suggests, I don’t really see the correlation between a VC blog’s technorati rank and its investments. Even if a VC has a blog that attracts a high number of readers its absolutely no guarantee that the readers will in any way be interested in the investment objects of that specific VC firm. I read Fred Wilson’s blog over at Union Square ventures and had no idea that they had invested in Oddcast or Indeed (I’ve never heard of any of these companies either for that sake)

To referr back to one of our earlier blog posts I have to say that I feel there is a very small number of companies that actually can tell a success story, at least in the mind of VC. However, all of these are very young companies, but today I’m having trouble to see the possibility that a company like Riya will be able to generate a ROI that would make their investors happy. Can’t see it happen really. However, then we have, of course, Del.icio.us, which seems to be the example that never goes away. A company started on the side, took some “small” (for us it would be huge, but apparently in the VC circuits it’s defined as small) rounds of funding and then sold quite fast to Yahoo for somewhere $20-30 millions. Cool. But stop it.

I heard about two brothers in Germany starting up two different sporting goods companies on each side of the street in their small village, I also heard that both of them were quite successful. I also heard that these two companies were named Puma and Adidas. However what I didn’t hear was about the same thing happening anywhere else, with the same success. So what kind of odds would you give yourself being the next Del.icio.us?

[tags]Alex Iskold, VC, Fred Wilson, Del.icio.us, Riya, Read/write web, web 2.0 [/tags]

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September 14, 2006 / Comments.

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