Archive for December, 2008

Confirmed: Venture Capital for Long Tail Entrepreneurs will be a SXSW Core Conversation

Last Friday SXSW added “Venture Capital for Long Tail Entrepreneurs” to the Core Conversation schedule. Obviously I’m looking forward to leading the discussion; I have been thrashing around the topic in blog posts and conversations with friends for the better part of a year. Thanks goes to Ethan Bauley for originally suggesting I submit the idea to SXSW.

“Venture Capital for Long Tail Entrepreneurs” is an idea that describes the need for a fundamentally different model for for creating and funding micro-businesses in the Long Tail of the economy as our society shifts towards a more personal, collaborative and distributed system of value creation.

I’ve continued to see the themes crop in a wide variety of conversations with friends, entrepreneurs and investors through the year and during my travels; there are a number of people that have seen the same gap and are pursuing a wide variety of approaches throughout the US. As we’ve discussed before, Y-Combinator, TechStars and Launchbox Digital are three obvious examples, but they are merely one approach, applying the same investment model, incenting the same goals, using a different economic structure for a rather specific industry. It’s the same approach with different math.

There are some interesting parallels with Chris Tacy’s core conversation “Do We Really Need VC’s Anymore?”, but the key is that this is not just about the the changing cost structures of startups, the current economic downturn or about the “too small to fail” ethos; this is not a call that “venture capital is broken”, but rather, it is realization of a broader cultural shift that will impact all industries (not just web businesses) as people look for ways to apply the same organizational and economic principles to the broader economy. It’s about finding a model for allocating and deploying capital (money, time and social capital) that can profitably support and encourage a broader, more personal and collaborative approach to entrepreneurship. It’s about reframing the goals, incentives and approaches to creating value.

That’s a lot to think about; looking forward to more conversations from everyone, and of course, come to SXSW and participate in the discussion…

Background: below are a series of posts building up to and thrashing around the idea. I suggest you start with Venture Capital for the Long Tail (July 21st) as a good introduction, then dig into the April 10th and June 4th posts for the broader “thinking out loud”.

Drive-By Consulting: College Station, TX and Dallas, TX

Honestly, right now I think the name “Drive-By Consulting” is a bit of a misnomer: I’m getting a lot more out of this than I’m giving. Anybody have any ideas on a better name?

Also: I’m having fun with a daily game on Twitter asking friends to guess how many miles I will drive each day…

Continuing the cross-country trip to meet entrepreneurs, investors, photographers and “change agents”…

College Station, TX
In College Station I had lunch with Travis Collins at Dixie Chicken, a restaurant and bar next to the Texas A&M campus that proudly proclaims that it “serves the most beer per square foot of any bar in the U.S.” Gotta love Texas.

Travis is an insanely talented programmer and creative problem-solver who has carved out a niche for himself in “getting wandering projects back on track.” In addition, Travis has also independently created a number of e-commerce solutions under his DreamingWell brand.

Talking to Travis about his projects reminded me what’s possible if we spend our time identifying problems and creating solutions instead of creating plans, outlines, pitches and approaches to partners and investors. (More on Travis and DreamingWell to come in the future…)

Dallas, TX
I met Brad Garland (bradgarland on Twitter), Mark McSpadden and Dave of The Garland Group for lunch in Plano, TX (thank you to Ron Shevlin for the introduction). The Garland Group is a consulting and software firm that specializes in risk management service and solutions for financial services companies and has also launched Banktastic, an online community for helping banking industry professionals quickly find relevant, industry specific information and share it with others.

We talked a lot about the credit union v. bank “issue”; the division between banks and credit unions is a source of deep-seated acrimony throughout the banking industry, yet for all the debate within the industry among the professionals and insiders, the differences between banks and credit unions are not readily apparent to customers.

Most of our conversation centered about the nature of communication, about our choice of channels, the implications of anonymity in communities, the “CU Skeptic”, the varying rules and codes of conduct we form throughout our relationships and the tyranny of email. It’s pretty easy to pick up that Brad, Mark and Dave are very smart, intelligent and insightful guys that blend their financial services industry experience with a broader view of how the Internet is altering the technological and cultural foundations of the industry.

Communication in financial services is an interesting topic. Historically communication and innovation are very closed in the industry, but recent changes in technology and culture are creating some cracks and opportunities. A maze of legal restrictions have created many of the walls between bankers (and between bankers and customers ), but it is as much based on the culture of the industry; bankers put heavy guardrails on their communications with customers, bankers don’t talk to other bankers and bankers certainly don’t talk to credit union professionals. But Banktastic is working to change that by offering an outlet for people to share on their own terms, to find value and knowledge outside their organizations; perhaps empowering the actions will lay the seeds for changes in the industry.

Later I met with Andrew Hudson (thanks Ryan Booth for the introduction), an independent video professional who pays a lot of attention to the changes going on in the video and photography industries has some great plans for the future (I won’t spill any of his ideas). Andrew’s passion and love for his craft shines brightly; I love meeting people like Ryan and him who live for their craft and are dying to create great work and great businesses. It’s what entrepreneurship is really about.

Meeting people like Andrew, Brad, Mark and Dave is what excites me; I get much more from them than I can hope to give in return. I don’t have a great master social media plan, but it’s still leading me to great people.

Where have I been?

Follow the continually updated map of the trip for all posts, more stories and photos.

What’s next?

  • Phoenix, AZ: today.
  • Los Angeles, CA: starting this upcoming weekend, and around for a bit.
  • San Francisco, CA: coming up soon…

How can you meet me?
If you’re on my route, contact me if you’re an entrepreneur or if you’ve got an idea for a product or company and you would like a bit of free consulting and advice, or if you want to hack out a financial model for your idea, or want to do an interview about your idea, or if you just want to say hello. I’m here for you.

MORE: Financial Models for Entrepreneurs