Web 2.0: Not necessarily good for VCs

Peter Rip of Leapfrog Ventures analyzes the Web 2.0 bubble. Good post.

VCs tend to “advise” experienced entrepreneurs to start a company again, these days. Many have certainly advised me.

But Peter’s analysis is on the money: low barrier to entry is not necessarily the most favorable market to enter.

One subtlety, however, is that entrepreneurs who know what they are doing can start and build a small business rapidly by boot-strapping, and get lucrative exits in 18-24 months. This IS a viable route.

Another viable route, indeed, is a cash-flow oriented lifestyle business.

Both of these, needless to say, are very bad news for the VCs.

This segment is a part in the series : Web 2.0