A Bubble-Era VC Is Itching To Get Started Again
from the invest-now dept
The title to this article is a bit misleading. I was all set to complain that the VCs who just now are starting to invest again probably missed a few years of incredibly cheap investments. However, the real point of the article is much better. The VC in question, Fred Wilson, has a theory that I agree with entirely. He's saying that technology companies, themselves, are in trouble. Technology is increasingly a commodity business - and as new technologies come along, they're better than old ways of doing business, but they don't offer the same ability to make money - directly. For instance, using VoIP instead of PSTN phone systems lets you do much more, but no company is going to collect as much as the phone company does now with their "tollbooths". So, where's the action? He seems to believe (as I do) that all this commoditization of technology is a huge opportunity for companies that use that cheap technology to solve specfic problems. So, basically, he's betting on the indirect results of technology, instead of the direct profits. It's an important distinction, and one that many companies are in denial about - especially if their business is being eroded by new technologies.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
commoditization
[ link to this | view in chronology ]
Consulting's an opportunity too
[ link to this | view in chronology ]