Posts tagged ‘Boston VC’

December 6, 2008

The VC Model is Broken, Several Perspectives

There has been a lot of chatter in the blogshpere about the VC model being broken.

Adeo Ressi of theFunded, kicked off the recent discussion with his presentation at HBS. The telling slide from the presentation is #13 showing more money going into the VC model than coming out.

Fred Wilson from Union Square Ventures responded with his usual insight.

Furqan Nazeeri x EIR at Softbank Capital and now founder of presents some numbers to show the VC model is really broken, and the negative impact it will have on startups.

Paul Graham of Y Combinator fame talks about the VCs possibly becoming less relevant as a result of this downturn.

A good variety of perspectives on an important subject for us.

First of all, lets recognize that each of these commentators comes from the Web startup space, which you will agree does not have the same requirements as a BioTech startup.

With that in mind, which if any opinions do you agree with? How do you see this issue shaking out in the next couple of years?

June 25, 2008

Boston based Spark Capital funds Twitter

For some reason, I think it is pretty cool that Spark Capital has invested in Twitter. Twitter’s new funding round

On one hand it is a bummer that a local VC has to go to San Francisco for yet another Web investment, but somehow this one feels good. And yes, Spark has only invested in two Boston based companies out of a portfolio of twenty. Or maybe only one, as it looks like Buzzwire is now mostly based in the Denver Co. area.

On the other hand it is good that a Boston firm is supporting a high risk darling of the web set with growing traction, scaling problems and no defined business model. I like that Spark is countering the perception of the stodgy and conservative modus operandi of the traditional Boston area VCs. They have demonstrated this via the Twitter investment as well as their initiative to curtail the use of non-compete agreements by Massachusetts companies.

I had mentioned before that Boston has another loose association with Twitter in a past post. Certainly we have some very active Twitterati such as @pistachio and @chrisbrogan to name only the tip of the iceberg.

So Kudos to Spark Capital. We can only hope that they find a Boston/Cambridge startup worthy of their attention. Who knows, they might be the first VC to snag a Y Combinator summer session company and keep it here rather than forcing a move to San Francisco or SV.

Check out Scott Kirshners post for more detailed analysis.