so I’ll come back to the second segment of the show in this segment we’re going
of the show in this segment we’re going
of the show in this segment we’re going to shift gears and talk about finance
to shift gears and talk about finance
to shift gears and talk about finance investing VC and fundraising there’s an
investing VC and fundraising there’s an
investing VC and fundraising there’s an article in P hub recently that talked
article in P hub recently that talked
article in P hub recently that talked about Sherwood partners a Palo Alto fund
about Sherwood partners a Palo Alto fund
about Sherwood partners a Palo Alto fund that basically goes out there not a fun
that basically goes out there not a fun
that basically goes out there not a fun sorry affirm that basically goes out
sorry affirm that basically goes out
sorry affirm that basically goes out there and as known as the Undertaker in
there and as known as the Undertaker in
there and as known as the Undertaker in the community and it basically just
the community and it basically just
the community and it basically just shuts down distressed companies or not
shuts down distressed companies or not
shuts down distressed companies or not even distressed companies companies that
even distressed companies companies that
even distressed companies companies that just you know are not going to be the
just you know are not going to be the
just you know are not going to be the big billion-dollar IPO so they get taken
big billion-dollar IPO so they get taken
big billion-dollar IPO so they get taken out it’s fascinating co-founder Marty
out it’s fascinating co-founder Marty
out it’s fascinating co-founder Marty pigeon ssin has been doing this now for
pigeon ssin has been doing this now for
pigeon ssin has been doing this now for well over a decade largest year was two
well over a decade largest year was two
well over a decade largest year was two thousand you know they’d basically
thousand you know they’d basically
thousand you know they’d basically they’re making a killing and especially
they’re making a killing and especially
they’re making a killing and especially when there was a downturn so he is
when there was a downturn so he is
when there was a downturn so he is quoted as saying that they’re closing
quoted as saying that they’re closing
quoted as saying that they’re closing down quote social networks video
down quote social networks video
down quote social networks video distribution and clean tech companies I
distribution and clean tech companies I
distribution and clean tech companies I don’t think either of us are experts to
don’t think either of us are experts to
don’t think either of us are experts to chime in on clean tech but I want your
chime in on clean tech but I want your
chime in on clean tech but I want your opinion on social networks let’s start
opinion on social networks let’s start
opinion on social networks let’s start broadly it’s 2011 does it make sense to
broadly it’s 2011 does it make sense to
broadly it’s 2011 does it make sense to launch like a vertical social network or
launch like a vertical social network or
launch like a vertical social network or has facebook just on the market well I
has facebook just on the market well I
has facebook just on the market well I don’t think Facebook owns the market but
don’t think Facebook owns the market but
don’t think Facebook owns the market but one thing we have to keep in mind is
one thing we have to keep in mind is
one thing we have to keep in mind is that social networking is something
that social networking is something
that social networking is something that’s no longer new and uncertain
that’s no longer new and uncertain
that’s no longer new and uncertain people know what they’re doing with it
people know what they’re doing with it
people know what they’re doing with it and they know how to build a business
and they know how to build a business
and they know how to build a business off of it and that brings me in my
off of it and that brings me in my
off of it and that brings me in my second point is that there’s pretty much
second point is that there’s pretty much
second point is that there’s pretty much too kind of business models for social
too kind of business models for social
too kind of business models for social networks and I’m really generalizing
networks and I’m really generalizing
networks and I’m really generalizing here the first one is to actually
here the first one is to actually
here the first one is to actually generate revenue directly kind of like
generate revenue directly kind of like
generate revenue directly kind of like what Facebook’s doing with all its
what Facebook’s doing with all its
what Facebook’s doing with all its different advertising options and the
different advertising options and the
different advertising options and the other one is to pretty much sell off to
other one is to pretty much sell off to
other one is to pretty much sell off to a company like Facebook because they
a company like Facebook because they
a company like Facebook because they want your technology if you’re trying to
want your technology if you’re trying to
want your technology if you’re trying to just be a Facebook clone or if you’re
just be a Facebook clone or if you’re
just be a Facebook clone or if you’re trying to generate revenue directly I
trying to generate revenue directly I
trying to generate revenue directly I suspect that you’re going to be under a
suspect that you’re going to be under a
suspect that you’re going to be under a lot more pressure and that you might be
lot more pressure and that you might be
lot more pressure and that you might be forced to close down if you have a very
forced to close down if you have a very
forced to close down if you have a very niche piece of technology that might
niche piece of technology that might
niche piece of technology that might appeal to either Google or Facebook or
appeal to either Google or Facebook or
appeal to either Google or Facebook or someone else then you’re more likely to
someone else then you’re more likely to
someone else then you’re more likely to survive provided you don’t run out of
survive provided you don’t run out of
survive provided you don’t run out of venture capital in the meantime of
venture capital in the meantime of
venture capital in the meantime of course it’ll be harder to raise more
course it’ll be harder to raise more
course it’ll be harder to raise more venture capital if you do run out and
venture capital if you do run out and
venture capital if you do run out and then you’ll be on the line but to go
then you’ll be on the line but to go
then you’ll be on the line but to go back to video how do you how do you
back to video how do you how do you
back to video how do you how do you think this might be affecting video
think this might be affecting video
think this might be affecting video because video companies whether their
because video companies whether their
because video companies whether their distribution or content oriented they’re
distribution or content oriented they’re
distribution or content oriented they’re they’re kind of about the same age of
they’re kind of about the same age of
they’re kind of about the same age of social networks yeah i mean i’ve seen
social networks yeah i mean i’ve seen
social networks yeah i mean i’ve seen this story unfold in 2008-2009 when
this story unfold in 2008-2009 when
this story unfold in 2008-2009 when every company sort of laid off thirty
every company sort of laid off thirty
every company sort of laid off thirty percent and asked
percent and asked
percent and asked staff to you know reduce their wages by
staff to you know reduce their wages by
staff to you know reduce their wages by ten percent remember the good times rest
ten percent remember the good times rest
ten percent remember the good times rest in peace by sequoia presentation which I
in peace by sequoia presentation which I
in peace by sequoia presentation which I think was just to scare both their CEOs
think was just to scare both their CEOs
think was just to scare both their CEOs but also the competition at other VC
but also the competition at other VC
but also the competition at other VC firms okay so I think whether you’re in
firms okay so I think whether you’re in
firms okay so I think whether you’re in content whether you’re in distribution
content whether you’re in distribution
content whether you’re in distribution whether you’re in content management the
whether you’re in content management the
whether you’re in content management the old eps whether your content delivery
old eps whether your content delivery
old eps whether your content delivery advertising analytics i think you
advertising analytics i think you
advertising analytics i think you basically now are find yourself with a
basically now are find yourself with a
basically now are find yourself with a fork in the road i think if your cost
fork in the road i think if your cost
fork in the road i think if your cost structure is like reasonable then you
structure is like reasonable then you
structure is like reasonable then you can probably stay business as usual and
can probably stay business as usual and
can probably stay business as usual and even accelerate the gas pedal the
even accelerate the gas pedal the
even accelerate the gas pedal the problem is again there’s a lot of
problem is again there’s a lot of
problem is again there’s a lot of companies and i’ll go meet companies
companies and i’ll go meet companies
companies and i’ll go meet companies like every time that I’m you know in the
like every time that I’m you know in the
like every time that I’m you know in the neighborhood and I just look around I’m
neighborhood and I just look around I’m
neighborhood and I just look around I’m like man there’s like 30 more people
like man there’s like 30 more people
like man there’s like 30 more people here and I think some of that growth is
here and I think some of that growth is
here and I think some of that growth is sustainable and and and realistic
sustainable and and and realistic
sustainable and and and realistic there’s demand there I think some of it
there’s demand there I think some of it
there’s demand there I think some of it is just driven by the market giddiness
is just driven by the market giddiness
is just driven by the market giddiness right and venture capital and all that
right and venture capital and all that
right and venture capital and all that so I think if your cost structure is
so I think if your cost structure is
so I think if your cost structure is again out of whack the yes you should
again out of whack the yes you should
again out of whack the yes you should probably start to not batten down the
probably start to not batten down the
probably start to not batten down the hatches but just be a bit more careful
hatches but just be a bit more careful
hatches but just be a bit more careful but I think if your cost structure is
but I think if your cost structure is
but I think if your cost structure is pretty reasonable then it’s probably a
pretty reasonable then it’s probably a
pretty reasonable then it’s probably a good time to get aggressive and go and
good time to get aggressive and go and
good time to get aggressive and go and get market share because other companies
get market share because other companies
get market share because other companies are going to have to inadvertently scale
are going to have to inadvertently scale
are going to have to inadvertently scale down especially if they are VC back
down especially if they are VC back
down especially if they are VC back because VCS are like you know they say
because VCS are like you know they say
because VCS are like you know they say this about investment bankers to and
this about investment bankers to and
this about investment bankers to and VC’s in particular and and just bankers
VC’s in particular and and just bankers
VC’s in particular and and just bankers when you say you know you need a loan
when you say you know you need a loan
when you say you know you need a loan it’s like they’ll give you an umbrella
it’s like they’ll give you an umbrella
it’s like they’ll give you an umbrella when it’s sunny but then the second it’s
when it’s sunny but then the second it’s
when it’s sunny but then the second it’s raining there like getting back that
raining there like getting back that
raining there like getting back that umbrella right so I think that you’re
umbrella right so I think that you’re
umbrella right so I think that you’re definitely going to see us not so much
definitely going to see us not so much
definitely going to see us not so much of a shakedown the way we saw in 2008
of a shakedown the way we saw in 2008
of a shakedown the way we saw in 2008 that was just fear in the marketplace
that was just fear in the marketplace
that was just fear in the marketplace but I think you are going to see some
but I think you are going to see some
but I think you are going to see some kind of slow down and some companies
kind of slow down and some companies
kind of slow down and some companies being forced to to just basically unwind
being forced to to just basically unwind
being forced to to just basically unwind or emergent to others we’re going to
or emergent to others we’re going to
or emergent to others we’re going to wrap up the second segment we’re going
wrap up the second segment we’re going
wrap up the second segment we’re going to be back and then we’re going to do
to be back and then we’re going to do
to be back and then we’re going to do lightning round an email of the week
lightning round an email of the week
lightning round an email of the week where a viewer basically calls BS on me
where a viewer basically calls BS on me
where a viewer basically calls BS on me we’ll be back
”
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