Ventures 2.0

by Pascal Rossini on March 11, 2006

in Venture Capital

With the emergence of new business models, it seems that 2.0 VCs have changed their criteria for investment choices: we must now focus on products known as "disruptive." In other words, on services or products that have the potential to upset the dominant economic sectors.

I listed the main parameters of change and investment for all startups today:

  • Disruptive Rule 1
    Before: barriers to entry must be very high to finance your company
    Today this is no longer a criterion, more barriers to entry are low, the faster the product can be active.
  • Disruptive Rule 2
    Front: When do you break even or positive?
    Today: we do not care, only the speed of propagation among users and the disruptive effect on the market are the criteria.
  • Disruptive Rule 3
    Before: The management in question? to invest in your company, you need big names to the board, the PhD, etc. ...
    Today: no matter the management, the founders and leaders must be "Hypes". Ex: Being former CEO of Kazaa or Napster.
  • Disruptive Rule 4
    Before: What about patents, you are sure your product is well protected?
    Today: a bit of tinkering, a free open source products "third party" and voila.
    Ex: FON.

    Provided that either distruptif!

Despite a mildly provocative :-) These concepts are investment and will make the success or major flop tomorrow!

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