When it rains, it pours. Here I am, blogging TechCrunch40 after not having anything good to blog for two weeks, and VentureBeat publishes an article that raises my eyebrows!
VentureBeat wonders if it is all down-hill from here based on the fact that KPCB and Benchmark have slowed their investment in Web 2.0 “stuff”.
Couple of thoughts, and there is more stuff, but I want to get back to blogging the conference:
1) As has been well-documented, the investment structure for Web 2.0 companies has changed. It is hard for big funds like these to put money to work in Web 2.0 businesses. They are probably having to look at different kinds of deals to put money to work efficiently.
2) Sequioa is mentioned, but not Accel, First Round, or Union Square. First Round and Union Square are investors that have shown a willingness and ability to invest in Web 2.0 companies in a structure that makes sense for everyone. I just wonder why we still assume that Benchmark and KPCB are the smart money. There is a lot of smart money out there and today, if a non-silicon valley Web 2.0 company was offered a choice between a term sheet from KPCB and Union Square, I think it would actually be kind of a tough choice. Frankly, for Cogmap, I think Union Square has probably built (recently) more businesses like the kind of business I imagine Cogmap will become. KPCB is such a big fund, they would put in more money and look for swinging for the fences. That’s not always the way to execute.
3) All this being said, I don’t want to talk too much out of both sides of my mouth. As I blogged yesterday, I feel like innovation isn’t where it was. Where are the crazy ideas? Markets are still growing super fast, but we seem to be in the tornado (ie the drive to standardize) rather than crossing the chasm.
4) And finally, I think everyone feels like there is a bit of a bubble right now. It’s part of the reason we haven’t raised capital and it’s something that even smart money pushing hard in the industry is talking about.
Anyway, back to TechCrunch.