Category

Current Affairs

Am I just a greedy VC?

My partner Jason has an impassioned post up about the carried interest debate currently taking place in Congress. No matter how you feel about Congress’ efforts to change the tax classification of VC profits from capital gains to ordinary income it’s worth a read (and keeping an open mind). Obviously this issue is important to me and to all VCs. And while I know there are differences of opinions on the subject (clearly given the intense debate going on right now) I think Jason does a nice job of talking through the personal (this feels overstepping), professional (there are other markets where innovation is taking place where investor are actually being completely exempt from taxes that will draw talent away…

Oppose HB 1192 – The “Software Tax”

My longtime friend Marion Jenkins, CEO of IT consultant QSE Technologies wrote what I think is one of the most eloquent and well thought out rebuttals to the proposed Colorado “Software Tax” (HB 1192).  With his permission I’m posting it here in its entirety. If you feel the way I do about this issue, I urge you to take a stand on this issue. I urge you to oppose HB 1192, the so-called “Software” Tax.  It is bad legislation and it will add significantly to non-productive administrative and legal overhead and kill productivity within the technology sector in Colorado (including not only technology-related businesses, but virtually every business – and every consumer – who uses technology).  It will also lead…

iPad Launch vs the State of the Union Address

Both were compelling for sure, but what did the Twittersphere have to say about it? Buzz monitoring company Retrevo put together some stats which suggest that wile the Apple announcement was big (topping out at 7,000 tweets per minute), the President edged the iPad out (peaking at 9,000 tweets per minute). I’d love to see the graph below with an overlay of what topics caused each of the spikes (they have this for the iPad announcement, but not the State of the Union Address – click through to the article to see the detail).

Colorado House Bill 1192 Is a BAD Idea

In times of fiscal challenge you can always count on government to come up with some pretty bad ideas to fund deficits. House Bill 1192 is a particularly egregious example of one such boneheaded idea. The bill as it is currently constructed would place a tax on all software purchased or installed in Colorado. This is a tax not just on the software industry but on every business that uses software. And it’s an incredibly stupid idea. According to the Colorado Software and Internet Association there are more than 5,500 software, hardware and IT businesses in the state and approximately 175,000 IT professionals (with a total payroll of nearly $5Bn). Across the sate there are thousands of additional businesses that…

$5k to pitch your business? Who falls for this??

The NY Times is reporting today on the question of entrepreneurs paying to pitch their companies to prospective investors – “Should Start-Ups Pay to Pitch?”. Highlighted in the piece is a Boston-based group – Revolutionary Angels – that charges companies $4,995 to enter their “business plan competition” (the winner of the competition receives an investment from the group). To be clear on my view of this: THERE IS NO CIRCUMSTANCE IN WHICH ENTREPRENEURS SHOULD PAY TO PITCH THEIR BUSINESS TO PROSPECTIVE INVESTORS. PERIOD. END OF STORY. This kind of activity makes me absolutely sick. And the fact that Revolutionary Angels calls their scheme a “business plan competition” is reprehensible. In the Revolutionary Angels setup they are asking 100 companies to…

Is serendipity lost in the digital age?

Damon Darlin argues in an article earlier this week in the Times that serendipity has become "lost in the digital deluge". His premise is essentially that through services like Twitter, Facebook and others we’ve essentially crow-sourced content discovery and lost is the beauty of discovering "something we never knew we wanted to find" (he uses the example of browsing a friend’s CD or video collection as something that the digital age has killed).  Even services like StumbleUpon or UrbanSpoon, which are designed to surface information that users typically wouldn’t find themselves – Darlin argues – really just gravitate to the mean. What?!? The Internet that gives us almost unlimited access to almost unlimited information, which allows us to browse for…

Foggy

  Clear announced last night that they had shut down. The note on their website says the following: Clear Lanes Are No Longer Available. At 11:00 p.m. PST on June 22, 2009, Clear will cease operations. Clear’s parent company, Verified Identity Pass, Inc. has been unable to negotiate an agreement with its senior creditor to continue operations. It goes on further to say that customers will not be able to receive a refund “because of it’s financial condition”. With over 250,000 customers (each paying between $100 and $200 annually) it’s a little surprising to me that they couldn’t figure out a way to make this work. I suspect (as does my partner Jason Mendelson). that the airports were charging more…

Subtle signs of change

The initial signs of hope in a market are often just the sense that things are swinging in the right direction. This is why measures such as "consumer sentiment" are so important to the outlook of an economy – when people think things are going well, they often do (and because consumers power over 70% of our economy how people are thinking about spending has a pretty material impact on how the economy actually does). There’s no venture capital equivalent to consumer sentiment (and frankly how could you poll a group of VCs and get them to agree on something anyway) but I feel that things are on the upswing – at least in the world of early-stage investing. Here’s…

Sam Zell at CU!

Reposting from my partner Jason Mendelson’s blog about an upcoming event at CU Boulder featuring Sam Zell. This will be a great event.   In the continuing Entrepreneurs Unplugged series, next week Sam Zell will be visiting the university. April 22nd, at noon in the large (Boulder NewTech Meetup) courtroom at the law school.  More info here.  It is free, but you must register, so keep that in mind. Sam is always an interesting interviewee and speaker and even more so this year with his recent sale of Equity Office Property and sell of the Chicago Cubs.

WSJ Venture Capital Blog

I’ve been enjoying Scott Austin’s Venture Capital Dispatch. It’s a great source of information, easy to read and is a great summary of information for those of us who don’t have time to read the Journal every day. Thought it was worth a pointer.