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Venture News covers the latest happenings in startup news from around the web.

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Game Change Ventures is a new venture development firm that focuses on connecting industry-changing startups to the resources needed to fuel the growth of their ventures. 

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Wednesday
May052010

Did you hear? The Future of the web is social

By Corey Kossack

It's no secret that more and more startups are turning to social media as a channel to spread their ideas or even utilize the social trend as the basis for their business entirely. Facebook's announcement a couple weeks ago about spreading Facebook across the web at the F8 Conference takes all of this to a whole new level. If you aren't up to speed on what happened there, you can check out some of the coverage on TechCrunch.

What's interesting about what Facebook is doing is not so much the "social plugins" they are making available to sites across the web, but the general concept that Facebook wants to "build a web where the default is social", as Zuckerberg commented.

When Facebook Connect first debuted, many people speculated about Facebook's potential role in commerce, media and other areas that could utilize the social graph to improve web experiences on other sites. Today, this is becoming more and more of a reality every day. Some real life examples:

One of the startups I spend a lot of time cultivating, Addoway, is just a few months into public beta, but has already baked in the Facebook social graph as part of its product. Addoway is an emerging alternative to eBay and the other marketplaces in the space who are continuing to innovate on the marketplace industry that eBay created. The concept behind Addoway is that online shoppers can find deals from thousands of independent merchants and individuals, but make buying decisions based on trusted referrals from people they know (their friends and friends of their friends), rather than buying from a stranger with nothing more than feedback ratings from other strangers to back up their reputation.

 

Or take a look at Blippy, a popular web startup out of Silicon Valley that is backed by a number of well known angels and VC firms. Blippy allows users to share their purchases on anything (automatically) with their friends. A number of years ago, Blippy wouldn't have stood a chance at taking off due to privacy issues, but today, we are all much more open to sharing personal data than ever before.

 

A different take on a social integration is the Billion-dollar-valued Groupon, which offers daily deals at massive discounts when they are able to sell a large amount of the deals at once and get "group rates" from local businesses. Groupon works not simply because they are offering heavily discounted deals on the web, but because social media has made it possible for these deals to spread instantly among users' friends and followers, with incentive for buyers to share these great deals with their friends.

This space is only going to get more and more interesting as time goes on, and is an area I am planning to focus my attention on for the next couple of years.

 

Wednesday
Jan272010

Sprouter helps entrepreneurs collaborate globally

By Corey Kossack

If you're a startup trying to navigate the path to success, there's no doubt you have probably heard of a website or two that might help you get there. Communities like StartupNation, PerfectBusiness, eFactor, YouNoodle and others provide access to entrepreneurs and each provide a number of different resources, information and tools for entrepreneurs. 

But if you're on the lookout for a new resource to check into, try Sprouter. If you look at Sprouter right now, you would likely call it "Twitter for entrepreneurs", but the site intends to become much more. Founder Sarah Prevette said that her intention in creating Sprouter was to give the thousands of entrepreneur organizations a centralized place to continue ongoing conversations online - rather than infrequent ones that happen at occasional in-person gatherings. The site's functionality does not fully represent that intention at this point in time, as Prevette's strategy was to get a beta version of the site up to get users in, then add additional functionality to fulfill her vision, which is on its way shortly.

One of the key features Sprouter is working on is two-way communication with Twitter, so users can share entrepreneur-specific twitter posts automatically with the Sprouter community rather than having to update from within Sprouter. The company is privately funded by angels.

As Sprouter adds more features specific to helping entrepreneurs collaborate on the issues that help them accomplish their goals (as opposed to another general forum for entrepreneurs to connect), they could be a very interesting startup to keep your eye on.

Monday
Dec142009

Winning in Entrepreneurship is a marathon - not a sprint

By Corey Kossack

Entrepreneurs love to rush. We are always in such a hurry to get things done, whether it be the launch of a website or the closing of our first big deal. We rush primarily out of fear, and sometimes that fear gets in the way of doing the right thing for our product and those who use it. What fear? Sometimes it's: "If I don't get this out to the world today, someone else will come out with a better version tomorrow", or "If I don't get an investor in the next 90 days, my company is going to go under and all my hard work will have been for nothing".

While there certainly is validity to both of these fears, entrepreneurs need to remember that there is always a way to continue moving towards achieving success - that is, if you meet the three following requirements:

1) You genuinely care about the impact your product or service will have on the people who use it

2) You created your company because there was a need for it - not because you had a need to be an entrepreneur

3) You are willing to do whatever it takes to turn your vision into reality

 

Maybe I am still a little too young and still a little too naive, but it is my belief that if you meet those three requirements, nothing will really stand in your way of continuing to make progress towards your end game.

One of my favorite entrepreneurs, Lyn Graft from Austin Texas, always said to me "It's more of a marathon than a sprint", when referring to growing a company. There were times when I thought that maybe Lyn's words were more of an optimist's way of making excuses for why things at their company weren't growing as fast as they had hoped, but I've come to see this as more of a reality than optimism. Those who are looking for a quick hit in entrepreneurship likely won't get it, but those who are in it for the long haul (who listen to others, adapt to what their customers need, and continue to push the envelope) will have a fighting chance at success.

Last week I read an article by Rosabeth Moss Kanter at Harvard Business School about innovators and staying 15 minutes ahead of the competition. Here's what was interesting to me about that article and how it applies to the subject at hand. Kanter said "Innovation is risky... Innovators often have to ease anxieties by sounding conservative when doing something radical."  She said that rather than trying to change the world, change your industry or change the way consumers behave overnight, you need to take baby steps toward your end goal, consistently staying just 15 minutes ahead of everyone else. So true. Look at Facebook. Back in 2004, if Facebook had launched with this mega-social network that allowed people you had loose relationships with to see every detail of what's going on in your life, do you think you would have signed up? Maybe not. But after years of conditioning us (15 minutes at a time) to open up and share our lives with others, today we are more than willing to tell people what's happening with our lives, and some of us have even gotten comfortable enough to tell people exactly where we are at any given time, using services like FourSquare

So rather than trying to sprint towards your end game, dig your heels in and get ready for the marathon ahead. Just don't forget to listen to your customers, stay 15 minutes ahead and keep innovating along the way. If what you are building really matters to enough people, you'll get to where you need to go.

Tuesday
Dec082009

eBay Meets Craigslist Meets Facebook: Addoway Launches Free Social Marketplace

By Corey Kossack

While eBay continues to hold on to an ample lead on a slew of competitors that have popped up in the e-commerce space over the last number of years, the online marketplace giant is slowly losing market share as new startups emerge with innovative solutions to satisfy online sellers who have been disenchanted with eBay’s ever-changing fees and selling policies.

Enter Addoway, a new free social marketplace for online merchants and service providers that recently closed an undisclosed amount of seed funding and is launching today. The best way to describe Addoway is a social alternative to eBay and Craigslist. Addoway brings together traditional online buying and selling with social media, in a more interactive environment than classifieds sites and a more open environment than your average online marketplace. The site was created to increase trust between independent buyers and sellers, while also giving sellers a new way to promote their products and services online without the burden of selling fees – which Addoway believes will lead to lower prices for buyers who use the platform.

Beyond its cost structure, Addoway’s biggest selling point is its ability to integrate social networking into the traditional marketplace/classifieds model. Users on the site can bring their reputations from other platforms by linking their social networks to their profile, and can easily publish their Addoway listings to their Facebook and Twitter feeds. They can also import their feedback and listings from eBay, if desired.

All Addoway users can post unlimited listings on the site at no cost. There is no listing fee to post an item and no final sale fee when the item sells. The site makes money by offering premium upgrades for users who want increased exposure on the site. Because Addoway has chosen to avoid the transaction-based business model that most online marketplaces use (where the seller gets charged a fee every time they sell something), they have the advantage of being more open than eBay, Etsy and Bonanzle because they aren’t concerned about ensuring that all purchases are made inside the marketplace. Instead, users can promote their own websites and social networks as well, using Addoway as a portal to drive traffic to their entire online presence in addition to selling directly through the site.

Addoway will face the great challenge that all new marketplaces face – attracting a large enough user base of buyers and sellers – fast enough to compete in a tough space against some very established competition. If they can overcome that all-important hurdle, Addoway has a shot to become a great tool to help people sell things socially and save money. Video below.

Disclosure: Addoway is part of the Game Change Ventures portfolio and I serve on Addoway’s advisory board.

 


Monday
Nov092009

4 ways to automatically get rejected from an angel investor

I loved this post so much that I had to give it some major love. The post is from Jason Cohen of Smart Bear Software. He lists these four ways he believes will automatically get you rejected from an angel investor.

1) Be dismissive of the competition

2) Have five-year projections

3) Gloss over your strategy for customer acquisition

4) Do what you think you "should do" instead of what feels right

See full post at VentureBeat.