Written on May 30, 2008 – 11:52 am
Steven Carrol, Next Web WebTipr France
A few years ago it was fashionable to make fancy Flash sites that had high impact upon visiting them, fancy graphics, cartoonish displays with an arty feel. But personally speaking I don’t go back to see these sites ever again, do you?
I’m the same with movies, once I’ve seen one, I generally won’t watch it again until I have forgotten it’s plot. Thankfully that fashion seems to have passed, albeit for a few corporates who haven’t quite caught up yet.
Today we have Web 2.0 fashion. Most of us upstarts competing in this arena have aspirations for either a sellout or to grow viral traffic into the millions so that advertising can fuel growth. This time around the fashion is very sleek and polished offerings, plenty of Ajax, lovely curvy corners, with as much javascript thrown in as possible.
For all the classy styles with the fancy drop-downs, the clean looks, Ajax signup pages, there is a distant lack of ‘retention content’, but that is not the point.
The point I want to make is about proving a concept before wasting thousands on classy designs that in many cases will never be seen by more than a handful of beta testers or the developers themselves.
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I hope you like that post!
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Written on March 19, 2008 – 2:43 pm
Ernst-Jan Pfauth, editor in chief
Mike Butcher from TechCrunch UK started the second panel as a depressed man. The credit crisis not just affects the world’s economy, but also the mood of one of Europe’s best bloggers. Luckily there were four investors at Plugg to cheer him up a bit.
Paul Fisher from Advent Venture Partners noted that lots of the start-ups have an advertised-based business model. And online advertising is still growing. Moreover, there’s a continued roll-out of broadband, specifically in Eastern Europe. He also said it’s a challenging time for VC’s: “Talent is a lot more expensive now”. So an important issue, according to Fisher, is that start-up expect more than VC’s.
Julie Meyer (Ariadne Capital) sees the crisis as a way to seperate the women from the girls and the men from the boys. The one’s that really want a start-up will pursue. So she sees it as some kind of filer. “It forces entrepreneurs to be a Fiat Punto instead of a Mercedes S class. Discipline is important now”. Reshma Sohoni from SeedCamp agreed with her: “Companies are now more careful with cash burn and costs”.
So in a few years, people will ask successful entrepreneurs: “What’s your secret?!” Those guys will then probably say: “Wel, we started in Q1 of 2008 and learned to start a company in an efficient way.”
The investors convinced Butcher. I even heard him saying a remarkable thing, something you would expect from a optimist instead of a guy who just lost his faith in world economy: “Yes, it’s a fantastic time to build a start-up.”
Written on February 6, 2008 – 12:07 pm
Ernst-Jan Pfauth, editor in chief
Last year, start-ups had a hard time seducing European venture capital firms to invest in their companies. VentureBeat reports that the VC’s are backing the fewest companies on record since research group VentureSource began tracking investments in 1999.
Only 897 companies were able to woo investors. Yet when they did, it certainly paid of. Since when European VC’s do invest, they are putting in higher bets than they did previously. They invest an amount of 4.56 billion euro in total, a two percent rise from 2006.
In Europe it’s more difficult to turn a company into a profitable business
It’s the fourth year of consecutive increase in the amount of money, yet this has not necessarily has to be a positive thing. Since VentureSource says that in Europe it’s more difficult to turn a company into a profitable business. Therefore VC’s have to keep investing to make sure that the start-ups become success stories.
The statistics of the European market for mergers and IPOs are a bit horrifying. In 2006 89 venture-backed companies went public, in 2007 this number dropped to 38. Moreover, mergers and acquisitions deals fell 38 percent to 136. Again, VentureSource can draw a sad conclusion: it’s the lowest figure of the past ten years.
The US economy seems to be in trouble, with the growing threat of a recession, yet the merger market was pretty strong.
Although this article is discussing differences between European and American markets, I reckon we should think in terms of best of both worlds. There’s more risk capital available in America and they have a better exit environment. But most American companies stick to their (huge) local market and their own language. European entrepreneurs and VC’s are more used to be working with language barriers, but less risk capital is available.
When we combine these two markets, the available cash, the network of the VC’s and the knowledge and talent of entrepreneurs,, chances of success are bigger. European investors already often look for an American partner in the series B. Let’s keep that up. On the web the world is flat, the only barrier we still have to take is language.
I’m the same with movies, once I’ve seen one, I generally won’t watch it again until I have forgotten it’s plot. Thankfully that fashion seems to have passed, albeit for a few corporates who haven’t quite caught up yet.
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