I’m trying to help VC Rick Segal to pump up the hits for Venture Capitalist Killer.
Maybe Rick’s been out in the cold in Canada a bit too long because he’s starting to have these radical ideas about the VC business, even suggesting that VCs should treat their portfilio companies as if they were valued customers.
Rick’s a smart guy, and he’s probably noticed the fact that these days companies don’t need VC finds to create, market, and sell products. Suddenly you can do that for next to nothing. I released a blogging client called Bleezer less than two weeks ago. Already people around the world are downloading it, trying it, suggesting great enhancements, and blogging about it.
The other day my local paper called to ask if they could interview me for a story about it, which they did today. Other than the cost of the Powerbook and my time, everything else has been free, so my cost to build and market Bleezer has been virtually nothing so far. And the marketing has been all word of mouth, and of blog.
So VCs are reduced to giving money to companies that are already successful, instead of having companies beg for their money. It’s putting VCs in the position of being evangelists for the products, instead of bankers.
The VCs that can adapt well to that situation – like Rick – should do just fine.