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Gloom in Ventureland – Try Gloom Period – Innovation Happens Now October 15, 2008

Posted by John in Technology.

I have to say that this post from the Wall Street Journal is a bit off. It’s a pile on of Silicon Valley. Believe me I would be the first to say it but Silicon Valley is fine. I do find the messaging about deep cuts to be silly and a bit babyish. However this problem is deeper elsewhere and the gloom is everywhere.  I don’t see Silicon Valley as bad as it was before.  I think everyone is using this to save face on this bad investments.  I can here the echos now in the boardroom “sorry boys… have to shut you down…bad economy..”

This WSJ post should be changed to the title to Gloom in Venture Land to Gloom Everywhere.  (an aside when I saw the WSJ post I looked to see if it was that writer Jessica Vascellaro who was involved in that idiotic Cyprus Camp – I can’t believe she still works there.. if she was a blogger like Sarah Lacy I’d say no big deal but the WSJ – wtf)

Question: would google be successful if forced to cut back and become what was the prescription in 1999-2000?

Remember: back then the conventional wisdom was “no money in search it’s all about Portals”… enough said.

.. Good companies win and bad companies lose…

We all know why the big scared straight memo came out…click here and here for the reason


1. Brian Roy - October 15, 2008

I agree in principle. I still think the primary problem with Silicon Valley is the idea that on the web you aggregate (e.g., eyeballs, page views, subscribers, etc) and then come up with a business model.
As I point out here: http://briantroy.com/blog/2008/10/15/can-we-please-stop-talking-about-monetization/ what Google did was innovate the business model in a way that solved a significant problem. That was their launchpad. Business Model is everything.

2. John Furrier - October 15, 2008

I am with you 100%. The key thing that you bring up is “business model” not “revenue model”. You are correct Google’s business model was to solve a problem that created value and the revenue model worked out in the end (the market is what it is) but their business model was solid – provide great search and navigation quality.

Business model – how you organize your assets – decide what to outsource and what not to outsoure – to create value then in turn getting paid for transferring that value to customers…

Revenue model – how you get paid

My point is the revenue model (how you get paid) doesn’t define your business… this is why the monetization thing gets me…the real question should be what value do you create..and how are you organized to do that… bla bla bla

great point Brian..thanks for the comment

3. Stardust Global Ventures » Life & Death - The Web 2.0 & Voice 2.0 Continuum - October 16, 2008

[…] But I don’t htink this is all as bad as many folks are saying. Colleague John Furrier wrote Gloom in Ventureland – Try Gloom Period – Innovation Happens Now in response to a Wall Street Journal piece. I agree with John that the WSJ seems to be calling for […]

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