Mike Hirshland

Archive for June 2008

Monetizing Simplicity

In venture capital on June 30, 2008 at 5:24 am

Excellent post this morning by Mashable’s Stan Schroeder.

In a nutshell:

it’s better to build a very simple service that caters to a very basic need, and slap an API on top, than to try and create a specific, complex service that does a lot right from the start. The first type of service, if executed well, has shown to be very resilient: once it breaks the initial attention barrier, competing against it is practically impossible.

The Magic Formula

Determine a basic need -> Create a service that satisfies it in the simplest way possible -> Open it up.

This is a powerful insight and sums up the new web ethos as well as anything I’ve read lately.

The challenge, though, is that “success” is defined here as distribution. I agree that it is very difficult to compete with ubiquity, and that ubiquity is served by simplicity.

The challenge, though, is monetizing simplicity.

Google Helping to Bring Premium Content to the Edges

In venture capital on June 30, 2008 at 5:02 am

Bringing premium content to the edges is something I’ve been ranting about for a while now.

This morning, Google announces that it has a deal to distribute new video programming by Family Guy creator Seth Macfarlane, across it’s AdSense network of publishers.

I think this is a very smart idea, and a good indicator of where the video programming biz is heading.

“Super Secret Plinky Makes its First Big Hire”

In venture capital on June 29, 2008 at 7:49 am

Or so says VentureBeat.

Hey, if nothing else we’ll have a damn good looking site!

The New Wave of Social MMOs

In venture capital on June 27, 2008 at 10:11 am

As with most technology trends, the much heralded advance of “social MMOs” has been a little longer coming than originally predicted/hoped for.

But I am feeling the groundswell building.

First, what I would call “first gen social MMOs” are hitting impressive milestones.  Habbo Hotel reportedly just crossed 100M registered avatars, while IMVU just announced hitting 20 M users.

Second, and more exciting to me, is a wave of new (not yet announced) startups that are leveraging the intensely social social network platforms to build MMOs for these platforms. I’ve been watching the intersection of social media and MMOs for a while, and am excited to see what is starting to emerge.  Check back a year from now, and I think you will see some pretty exciting new kids on the block.

I’m Not Angry I’m from Philly

In venture capital on June 26, 2008 at 3:40 pm

Great T-shirt I saw today.

(I’m from Philly)

Xobni Gets Even Better with LinkedIn Content for your Contacts

In venture capital on June 26, 2008 at 8:52 am

Per TechCrunch post.

This is way cool.

Big Day for Conversational Media

In venture capital on June 26, 2008 at 8:40 am

I have become fascinated with, and excited by the prospects for, conversational media. Indeed, conversational media is the core focus of Jason Shellen’s Plinky (which we just seed funded).

Turns out yesterday was an interesting day for conversational media.

First, Twitter propagated an urban myth that Jared the Subway Guy had died. As Louis Gray posted, “Smart People, Stupid Tweets. Fake News Spreads Fast on Twitter” A good example of a bad use of conversational media; or, at least a use that seems to have little value.

On the other hand, my friend Ryan Spoon announced the launch of  InGameNow – which is essentially a twitter for rabid sports fans. Now, this is a GREAT use of conversational media.

And finally, Facebook announced it is adding comments to the mini-feed, which also seems to me to make a ton of sense.

Sometimes You Just Have to Ask

In venture capital on June 26, 2008 at 8:13 am

A newly minted college grad just landed a plum job at my portfolio company Automattic.

How’d he do it? Founder Matt Mullenweg was receving an award at Temple University, and this guy, a senior at Temple, approached Matt after the ceremony to express his enthusiasm for Automattic’s flagship product, WordPress.  They ended up spending quite a bit of time together, kept in touch, and ultimately Matt was so impressed with the grad’s intelligence, energy, and passion for WordPress, that he hired him.

This reminded me of my own luck in landing a job at Polaris.  Ten years ago I was a staffer on Capitol Hill and decided I wanted to get into VC and/or Internet stuff. Not exactly a traditional path.  Through my work I had gotten to know a bunch of muckety-mucks around Silicon Valley, and got a bunch of high level intros around the business.  Out of the approximately 100 meetings I had looking for a job, a grand total of 1 came from a cold call (actually it was a cold email). And that 1 was Polaris.  Turns out Jon Flint, who had recently cofounded Polaris, had, like me, gone to UVA Law and moved to VC after being a staffer  on Capitol Hill.  So I sent Jon an email, he actually opened and read it (good thing he didn’t abide by the TL; DNR rule!), and, as they say, the rest is history.

And, one of the lessons I have learned from Jon is that nobody is too old or too senior or too successful to pick up the phone and make a cold call. After 25 very, very successful years in the business, Jon still cold calls companies he reads or hears about and finds interesting.

I saved the original blind email I sent to Jon, and have it framed in my office. It is a good reminder that sometimes great things come your way — but only if you aren’t afraid to ask for them.

TL; DR

In venture capital on June 25, 2008 at 8:28 pm

Last night I had a beer with Matt Mullenweg, founder of my portfolio company Automattic, and creator of WordPress.

Matt, being Matt, was quite proud of a new standard email reply he has come up with to let the sender know not to expect a response: “TL; DNR.”

Translated into human speak: “too long, did not read.”

I actually haven’t received this from Matt yet — he just flat out ignores most of my emails.

The Incredible Shrinking Venture Capital Industry

In venture capital on June 24, 2008 at 8:56 pm

Good news from VentureSource: the number of active VC firms continues to decrease from its bubble high of 1200 firms in 2000. By 2006 that number was down to 884, and down even further to 844 in 2007.

Progress, but still a long way to go (or not).