Mentoring Hawaii tech companies with an Intellectual Property Licensing Model
Guy Kawasaki has posted some good wisdom on what VC’s like. My favs:
A very good read.
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2006 will be the year we all predicted that Web 2.0 will crash. The real question of course will be whether the prediction will be true or not. You’ll just have to watch this graph and see.
Posts that contain Web 2.0 Crash per day for the last 60 days.
Get your own chart!
Hat tip: Steve Rubel’s post on the pending Web 2.0 crash. “Sell GOOG!”
I received an email recently:
I have a patent pending technology in e-commerce that deals with comparison shopping and would like to have a patent search done on it. Would you be able to recommend a company that can help me with this?
Here’s the answer:
Patent searches could and should be done by you first. Go to uspto.gov and do it. Google will actually be an even better patent search mechanism in that you can look around for things that may be prior art but not necessarily patented.
If you really want your patent to be good, you must become an expert in that field. Otherwise you’ll potentially spend a lot of time & money to patent something which is potentially worthless or has already been invented. You need to know about all the other techniques used to do things similar to what you’re doing.
I asked Patent attorney Leighton Chong what he thought about this and he added:
You might also include the importance of “literature” searching as well, i.e., white papers, industry proceedings, conference symposia, press releases, new product literature, etc. These commonly precede patent publications, and are far more diverse, wider ranging, and easier for anyone to publish than patents. Online searching for published literature is also made convenient through search engines like Google which are about as reliable as industry databases. Since published literature is just as usable for prior art as published patents, in my opinion it is far more important to search published literature than patents.
Scott Maxwell (whose blog and mine use the same graphic skin) has a good post on patents, “Patent Process and Resources- some practical steps to take”
read it.
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Guy Kawasaki put up another informative post, “The Top Ten Lies of Entrepreneurs” and has done a pretty good job of digging up “red flags” in a given pitch. Here they are:
“Our projections are conservative.”
“(Big name research firm) says our market will be $50 billion in 2010.”
“(Big name company) is going to sign our purchase order next week.”
“Key employees are set to join us as soon as we get funded.”
“No one is doing what we’re doing.”
“No one can do what we’re doing.”
“Hurry because several other venture capital firms are interested.”
“Oracle is too big/dumb/slow to be a threat.”
“We have a proven management team.”
“Patents make our product defensible.”
“All we have to do is get 1%% of the market.”
Just about every pitch will use several of these “lies”. (heck, my last company used all but the Oracle lie) That’s not necessarily a bad thing. But what IS a bad thing is when these statements made again and again, in great fanfare, in an effort to close a deal.
That’s a red flag.
My personal opinion is that when you do make one of these claims, first, make sure it’s 100% true. Second, don’t make a big deal about it. Why?
When you make a big deal out of any of these points, you’re making it an important component of your company’s success. If any of these points fail or fall through, you will lose credibility in proportion to the fanfare you made of it.
When you do make a statement like “big company X is talking to us about an acquisition”, it helps to add in something like, “but of course that’s a long shot and right now we’re in very preliminary talks with nothing in writing”. Stuff like this lets you speak the truth, yet also communicate that you’re realistic about it.
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This is really a great time to be a programmer. With the combination of all the Web 2.0 apis plus great OSS code sitting out there, one guy can hammer out cool services, create neat-o value, and then flip it to Yahoo.
Congrats to Lucas Gonze whose 1-man shop did it all w/ zero funding. Rock on baby! Too bad he’s going to relocate to the mainland. Damn.
Read Kevin Burton’s post on the acquisition.
Search through other blog posts on the acquisition
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If you’re talking to Angels and debating between things like Equity financing vs. convertible debt, read this nice post “Milk Money” from the simple, straight, and soon-to-be-successful people from Meebo.
Althought I admit other than ad placement I dunno what their revenue model is.
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Did you just pitch to a VC and you think you heard a Yes? Are you sure?
Just read Guy Kawasaki’s “The Top Ten Lies of Venture Capitalists” and out of that list, three items are lies you hear when a VC is telling you they will not invest:
See his post for complete details.
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Ed Sim wrote a great post, “Tips for the first VC Meeting“. Read his and then read an older post of mine “If you can’t talk about your product, you’ll never sell it” and you’ll (thankfully!) see a lot of similar thinking.
Ed’s (excellent) tips are:
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