SM: There was a piece of the services industry that is well known, which is consulting services. That is not what you have in mind when you say services. BJ: Correct. We are talking about technology companies that use their technology to provide a service and usually they are using a network to deliver that
SM: Even so, 2002 was not a great time to start a new fund. BJ: No, it was a horrible time to do that! SM: Tell me more about that experience. BJ: I knew a few VCs who had tried to raise a new fund in 2002, and most of them gave up. They concluded
Most Venture Capitalists that entrepreneurs work with these days have never been entrepreneurs themselves. They have not had to take substantial personal risks. They are used to cushy lifestyles, fat paychecks, and existing brands that their firms have built long before they came on board.
If you are a very early stage entrepreneur looking for financing, chances are you need a lot more than help with financing. Most likely, you need help with Positioning, as well as overall strategy. For the moment, I do not have the bandwidth to take these projects on on a pure equity basis. I do
SM: How did you finance the different phases of the company? CL: In late 2005 and early 2006 we signed on two publishers that, together, quadrupled the size of our audience. We grew the company to the maximum extent possible with all the profits we’d accumulated. A few months later, one of those publishers left
SM: Describe your ideal entrepreneur. DH: Smart, hungry, focused, yet open minded, capable of creative and analytical inspiration and coachable in those areas where they can use help. To use a phrase mentioned earlier, I like working with people who take the game very seriously and are driven to win, but who manage not to
SM: Describe, in some detail, the last deal you funded, and your rationale behind funding it. DH: I’ve made three recent investments; one new and two follow-on. The new is www.revision3.com, formed by Jay Adelson and Kevin Rose. This was exactly the type of new media play I was seeking–something hugely ambitious with existing traction
SM: What are your key investments and the rationale behind making those investments. This will help entrepreneurs understand how you process deals. DH: In truth, ‘it all depends on the deal’ is a legitimate answer here. That said, there are a few key considerations I run through in most deals. First, do I think the