The Synchronous Web

Last week YouTube rolled out a realtime app that allowed users to see what their friends are doing on the site. A number of us, myself included, Twittered that this was another indication that the synchronous web is coming.

The next day I had breakfast with Hangout CEO Pano Anthos, who pointed out that I had blogged on the synchronous web a few months ago.  At the time, I raised the question whether the web would become more synchronous. Now I’ll go further. There’s something afoot here, and I’ll put a stake in the ground: the rise of the social web wil usher in a wave of synchronous web behavior.

The Rise and Fall of Venture Capital

Last Friday there was a fair amount of noise made over the most recent “MoneyTree” Report showing a year over year decline of 47% in VC dollars invested in the Fourth Quarter, including this article in the New York Times.

Fred Wilson has a post digging into the numbers, suggesting most of the decline came from the Clean Tech sector, and the Silicon Valley region.

I haven’t spent the time to study the numbers, and don’t plan to. However, speaking from my own perspective, I actually am quite pleasantly surprised by the number of high quality entrepreneurs pitching high quality ideas since the beginning of 2009. In fact, I’d say I’ve seen more genuinely backable pitches over the last few months than during any earlier time. So while the total amount of VC invested has been declining and probably will continue to decline, I would wager that the number of high quality VC opportunities is as high as ever.  Though, of course, we will have to wait 4-5 years to find out if that is true.

Twitter vs. FriendFeed: The Case for Simplicity

In his post entitled “FriendFeed may be the coolest app nobody uses,” Michael Arrington makes a very simple but powerful point:

And the fact is that FriendFeed may just be too complicated for the average user to quickly understand. Twitter is fairly simple: spout off on whatever you like in 140 characters or less, and if you’re interesting enough people will begin to subscribe to you. FriendFeed, by contrast, is a much more complex system with numerous bells and whistles. The power users love it. Novices can be overwhelmed.

For all of you out there building web products, remember the power of simplicity.

Thank You WordPress for my Twitter Widget!!

Since becoming a twitter-holic about 6 weeks ago, I have really wanted a quick ‘n easy way to insert my Twitter posts into my blog.

Lucky for me, lots of other users have had the same desire. So the WordPress guys have just rolled out this functionality to WP.com bloggers. So I now have a widget in my right-hand-sidebar that shows my last 8 tweets.

Awesome!

An Entrepreneur’s Advice on Picking Your VC

I just read a fantastic post by Redfin’s Glen Kelman sharing his own experience and thoughts working with VCs.

Of course, I am totally biased, so consider the source; but I found Kelman’s post really refreshing. He is honest about his earlier disdain for VCs; does a good job being cynical enough to want to discern those VCs who are BS artists; and recognizes that while different VCs have varying abilities to “add value,” being able to develop a good partnership with your investors and board members makes the job of being a startup CEO much less lonely.

I particularly liked the questions he suggests you ask a VC when you are considering taking his/her capital:

1. How do you see our market changing over the next few years? Your investor has to develop her own ideas about your business sooner or later. At this early stage, this question is mostly an IQ test.
2. When times have gotten tough for your portfolio companies, how have you helped them out? Anybody can get lucky with an investment that takes off like a rocket; all you have to do is hang on for dear life. A VC’s true measure is how she gets all her other companies pointed in the right direction.
3. Who are your favorite entrepreneurs? Some people genuinely like entrepreneurs, notwithstanding their volatility and constant intellectual jousting. Most people fake it. If the investors’ fave five is composed of people she hasn’t worked with, she’s faking it.

In Search of Great Product Guys (and Gals)!

Those who spend time with me know I am a broken record on the topic of  “it’s all about the people.”

But it seems to me I need to change my tune – a bit. In the consumer web, it’s really all about the product guy (or gal).

Looking back on my happy and not so happy experiences investing in, and working with, consumer web startups, the theme is surprisingly clear. The presence or absence of a great product guy is the single most important determinant of success.

So, for all of you product studs out there, and/or all of you who are friends with product studs, give me a call!

What A Lawyer’s Blog Looks Like

I just stumbled across an otherwise interesting blog and discovered that it has a disclaimer on it!

Another reminder why I left the law. Here is the disclaimer in full:

Disclaimer

This blog is published by and reflects the personal views of Hank Heyming, in his individual capacity. It does not necessarily represent the views of his law firm or his clients, and is not sponsored or endorsed by them. No representation is made about the accuracy of the information contained hereon. The information contained in this blog is provided only as general information for education purposes, and blog topics may or may not be updated subsequent to their initial posting.

By using this blog you understand that this information is not provided in the course of an attorney-client relationship and is not intended to constitute legal advice. This blog should not be used as a substitute for competent legal advice from a licensed attorney in your state. This blog is not intended to be advertising and Hank Heyming does not wish to represent anyone desiring representation based upon viewing this blog in a state where this blog fails to comply with all laws and ethical rules of that state.

Pay it Forward and the Two Year Rule

I recently heard a talk by Zappos founder Tony Hsieh. Along the way Tony made a comment about always taking advantage of opportunities to help others, and how often he has experienced people he’s helped subsequently having some positive personal and/or professional impact on him about two years later.
Which got me thinking…
I actually have had a remarkably similar experience. In my line of work it is pretty straightforward to see how establishing relationships with good people can be valuable down the road, whether in the form of investment opportunities, talent to recruit to portfolio companies, or just smart folks who help me understand where the web is going.
And recently I’ve had a raft of encounters with great people I first met 18-24 months ago and whom I had a chance to help or at least get to know well, and who are now helping me in myriad ways, not the least of which is giving me an opportunity to fund them as they leave their mothership and start their own venture.
All of which serves as a great reminder to try and take the extra moment to be helpful to the person looking for a job, or the entrepreneur whose current venture is not a fit for me, or the corporate exec looking for advice on entering startup land. Help them now and chances are many of them will pay it forward…

Entertainment vs. Tech Industries

I just had a fun conversation with a long time tech entrepreneur who now finds himself working for a business that is owned by a large entertainment company. And he is finding himself dismayed by the cultural gulf between the managers of his unit and management of the parent company.

Needless to say, he finds more merit in the aptitude and value of the tech managers.

He summed it up by saying “now I know why Terry Semel was never able to integrate into Yahoo.”