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    The web home of Scott Burkett: Serial-entrepreneur, tech-geek, dad.

    Blogging, opining, ruminating, and pontificating on entrepreneurship, venture capital, process improvement, technology, online communities, business networking, IT Management, online social networking, and other things that melt in the warm Atlanta sun.

    "Beneath the noble bird, between the proudest words, behind the beauty, cracks appear ..."




    Do VCs Still Matter?

    Dec
    21st
    Categories: Venture Capital
    Author: Scott Burkett
    Publication Date: 21 December, 2006 (12:02)
    Tags: , , ,

    According to Fred Wilson at Union Square Ventures, they do. If you are a web entrepreneur, you owe it to yourself to read this post.

    This chart showing the capital requirements of “web 1.0″ startups compared to “web 2.0″ startups is brilliant (click to enlarge). Notice the nice curve on the web 2.0 line, which reflects the relative ease of getting into the game these days. But note how eventually, you end up with a “real” business, and the cash requirements become very similar. Good stuff, Fred.

    web_startups_capital_requirements.gif

    Cheers.

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