Shriram – Starting an Internet business has never been cheaper. Looks for teams that don’t have business guys early on. The business can develop as time goes on. Why take 5 million when you only need 1 million to start a business. He would rather see a business start lean and work lean with laser like focus. There is a problem of to much money. Right now if you have an idea you won’t have any problem with raising money.
McNamee – Some of the most attractive ideas need less than a million dollars. Those guys don’t need venture capitalists they need smaller angel investors. Venture capitalists look at companies that need 5 million to start and plan to invest 25 million over the life of the company. You don’t want to be doing the same things as 25 other people. This is the same for entrepreneurs and for investors. Investors have to find something new as well.
A couple of compelling things going on right now – “Users generated content. It’s an alternative to passive entertainment.” Things like youtube enable that activity.
The other thing that is going on is time. How do we filter out important things and help people figure out how to get to it quickly.
People desperately need to be entertained and they need it in a better way. “What matters is the slice of the pie not the size of the slice.” Make a bigger pie. Making judgments about people is the single most important thing a entrepreneur does.
“Entrepreneurship is not for lightweights.”
John Battelle – Stay over 51% as long as you can.
McNamee – Controlling interest doesn’t matter. My percent has shrunk each time I started a company. The reason is I am less interested in failure. The partners are an insurance policy. Shiram is the definition of smart money.
Dropsend.com – built for 75k. Looking to sell it now. Why do we need you?
Shriram – good question, you don’t.
I have heard from entrepreneurs during the conference that they didn’t take any investment money to start. Starting is cheap. There are a lot of VCs here who seem desperate to find something to invest in. The environment is interesting.