Southeast VC

Google Checkout Launched

Rather than re-invent the wheel here, I will point everyone to Scot Wingo's blog on Google Checkout. Lots of valuable info there and other links available.

Scot's company ChannelAdvisor (one of our portfolio companies) is one of a handful of launch partners with Google on this. Lots of good PR around this relationship.

It was last year - June '05 that I shared that Google was working on this project.

Don't Build Your Company for the VCs

I feel like we're seeing increased deal flow around "hot technologies." I am keeping this definition vague, but what I mean here is technologies that are getting $$$/attention from the VCs.

This approach of entrepreneurs creating more hot technologies that specifically appeal to the VCs is nothing new, but happens more often when the market is stronger. Usually, a lot of these ideas have a "me too" strategy rather than offering clear differentiators. By the way, offering a technology for free is not a differentiator. :)

Rather than building your company for the VCs, build your company for your customers and because YOU believe it can be a long term sustainable company.

Also, work on something you enjoy, a space you know and are are connected to.

A big problem with creating companies in a hot space is that VCs have typically already made their big bets. A lot of capital has already gone into the space. This means you'll be immediately going against a ton of competition with companies that are well funded and have had a lot of lead time over you.

Building the Best Board

I really enjoyed moderating a panel last night on Preparing for Your Successful Exit. The panelists were all great which made my job real easy. One of the things that the panelists discussed was how important it is to put together the right board to maximize the company's value. I would like to quickly share 3 key points here.

1. Strike the right balance. Have a good mix of VCs, insiders and outsiders on your board. The emphasis with this comment was making sure you don't overweight your board with a bunch of VCs.

2. Aim high. Fill the board with the best people you can find - especially with the case of independents. Don't settle for mediocre board members or friends of yours just because you are close to them. Who are the thought leaders in your industry? Who can bring significant contacts to you and help open new doors? Call them.

3. Involve a contrarian. Find someone that shares different views that everyone else. That person should be someone that can push back, think of things differently, challenge the strategy at the right time.

Vonage Lawsuit

The lawsuit against Vonage by unhappy investors doesn't surprise me. Although the fact the stock dove 30% in just 7 days does. All of this makes me thankful I passed on the opportunity to participate in the IPO.