I’m sitting at TiEcon 2009 and reading the Do Web Entrepreneurs Still Need Venture Capitalists? debate on TechMeme. There’s no short answer to it, my two cent is that a lot has changed, especially in software there is a lot you can build and market today without major investment, and if you can pull it off, you are better off without VC investment. That said there are still areas in software that are more capital intensive, and it’s espcially so in many other areas, think biotech, cleantech, chips, material sciences..etc. So VC’s are not exactly an endangered species.
But they are not the Center of the Universe either – and this is why I find it ironic to read this debate @ TiEcon. This conference is supposed to cater for Entrepreneurs, and there are a number of very good sessions, there’s even a Business Bootcamp. Let’s peek in some of the sessions.
High Growth Strategies for Companies – you’d think you get to hear successful startup CEO’s who made it big, perhaps took their company public, perhaps you’d even hear God Benioff speak … but you get two VC Partners, HP and KPMG on the Panel. Nothing wrong with these guys, but I think the Entrepreneur to Entrepreneur approach would have been more credible here.
Beginner’s Guide to Marketing: Critical Tools for Young Companies in the Art of Viral Marketing – hm … the only panelist is a VC Partner. Couldn’t TiE have found a great Marketing VP?
Best Practices In Cash Flow Management – you’d think it’s about bootstrapping, being frugal, so you’d expect startup CEO’s who have survived and thrived on a shoe-string (I know a few…). But why are the two panelists from Visa and Intuit?
Getting Your First Few Customers and Building Your Sales Organization – great, this will likely be war stories from a succesful VP of Sales. Wait: Panelist from UC Berkeley? (yawn…)
Starting a Company in this Economy: Yes, You Can! The Lean Startup Guide. You’ve probably guessed by now – yes, the one Panelist (btw, it’s not a Panel is all you have is one speaker) is from HaaS /Stanford.
Anyway, the session here is over, time to mingle in the crowd, so let’s wrap it up… my point is: TiE, SVASE and all these “entrepreneur-focused” organizations should wake up, realize how times have changed, and engage the entrepreneurs themselves, instead of deliver VC, Corporate Management and Academia style speeches at these events. They better do it before they become obsolete.
Hey Ben I totally agree that if you can avoid VC’s you should even if it takes slightly longer to bring your product to market. It took $447,000 total in friends and family money to reach our break even point and now we are operating and growing out of profits.
We are a living example of the fact that you can grow a fast paced company without VC money. As an aside the original founders still own a very substantial piece of the company, don’t have any bureaucracy to deal with from investors, and can direct the company as we see fit.
I’m all for VC’s when they are needed but people think they are needed more often than they are. I get to lecture at local Universities for business students and the focus on getting investment for your venture makes me sick. Students and young entrepreneurs seem to think that success is getting your idea funded when it’s WAY more than that.
The days of venture returns for Enterprise software are over. Now it will be who can deliver more for less. This will be a classic “Innovators Dilemma.” Soon major parts of Enterprise software will be available for free.
Attended TieCon09 as well, a panel from the winners and nominees of the Ticon50 companies would have been more relevant to the audience.
EIR’s or VC’s who have built their own companies are my other preference.