This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Posted on May 15, 2010 | 44 comments


We just had our sixth episode of #TWiVC and I felt this one was the best.  This week was had Jason Calacanis as our guest.  It’s always fun chatting with Jason because he’s knowledgeable about the market, quick on topics and pushes me to talk more about VC / entrepreneur issues. We’re staring to get the hang of how to divide the show up into talking about deals but also talking about issues for entrepreneurs during funding.

Next Wednesday we’ll have Dana Settle of Greycroft Partners, a New York / LA early-stage venture capital fund.

I think this episode is worth watching (video is here) but as always I’ll try to summarize for anybody short on time.  In terms of topics we spoke about:

- Do VC’s send your presentations around to other people if they don’t fund you? (short answer: very, very rarely. But it does happen.  What I caution people about more is the implicit knowledge that is shared over time without VCs realizing that they’ve passed along knowledge they learned from you.  This is unintentional and inevitable.  Nevertheless, if you share too much in your funding process or meet too many VCs expect a certain amount of your ideas to spread around the startup community.

- What are the three most important lessons investors could pass along to first-time entrepreneurs raising money? We covered the topics discussed on VentureHacks.  We read each of these statements from Chris Dixon, Babak Nivi, Naval Ravikant and me.  It’s worth clicking on the link and reading the very short recommendations given by all of us.  In the show Jason & I spoke about each person’s claims and gave our opinions.

- What are “Reg D” filings with the SEC and why does this make it harder to stay in stealth mode? We covered the topic in the video and if you don’t know the issue you might learn from listening to our discussion.  Josh Kopelman wrote about this previously and if you don’t understand the issue it’s worth reading his post.  Dan Primack covered the issue on PEHub in which he asserted that there were ways around Reg D.  I’d link to it but it’s behind a paywall.  The following was available:

“I kept hearing about startups that raised VC funding, but which hadn’t filed Form Ds (nor issued a press release). I asked some of the participating VCs, and they told me their attorneys had figured out a way to keep their stealth-mode companies stealthy.Yes, this strategy is not for every company. Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) and who had biz reasons for wanting to remain stealth.”

- We spoke about the changes to an “accredited investor” proposed by Chris Dodd – This would be bad for angel investing.  We spoke briefly about why.

- When you see a big round that is announced, does it mean that they really raised all this money? Short answer: no.  Often times when companies raise “bridge” financing (this is money from internal investors. We discussed in the video why they don’t price this money but give it as convertible debt) they don’t make announcements to the market.  They also avoid Reg D.  But when the finally convert the debt to equity the round gets filed with the SEC and thus journalists often pick up on it.  They therefore might announce a $10 million round when in reality sometimes $8 million has already been spent.

- We spoke about employment contracts for entrepreneurs – We talked about “change of control” provisions in your contract and how to negotiate them.  Specifically we talked about what single trigger vs. double trigger acceleration works and “termination without ’cause’.”

DEAL OF THE WEEK

StackOverflow – We both have a love fest for Joel Spolsky who also co-founded Fog Creek Software.  He is the author of “Joel on Software” and I was a reader nearly 10 years ago when I had never heard of Fred Wilson, Brad Feld and VentureHacks didn’t exist.  StackOverflow is a free Q&A site for software developers, blending functionality from wikis, blogs, forums, and social voting (similar to Digg/Reddit); 7.1mm unique visitors per month; new funds will be used to build out engineering team and build out product.

I first discovered it from Dharmesh Shah’s blog OnStartups.  He had a version of StackOverflow installed here and I thought it was a great resource for entrepreneurs.  YOu should check it out.

$6mm in Series A: Investors: Union Square Ventures (Brad Burnham) (lead), Ron Conway, Chris Dixon, Caterina Fake, Naval Ravikant, Nirav Tolia, Joshua Schachter, Micah Siegel, Bob Pasker – Read more: VentureBeat

OTHER DEALS

1. SocialVibe – Social media monetization platform that benefits non-profit organizations and social causes.  Users participate by performing tasks, taking surveys or watching advertiser videos.  Joe Marchese and Willan Johnson are President and COO, respectively.  Jay Samit is rumored to be CEO but is not on the website for some reason.  If you watch the video you’ll see that Jason & I debated whether Austin Ventures or Redpoint had funded HowAway / VRBO … turns out we were both right!

$11.65mm in Series C – Investors: not announced – likely an inside round; previous investors: Redpoint and JAFCO – Read more: : SEC Registration Form D, peHUB, SoCalTech

2. Invidi – Provider of addressable television advertising and marketing services to cable, satellite and telco-delivered television carriers.  Addressable advertisements are capable of being targeted to the individual household.  Following Microsoft’s addressable advertising trials with NBC in June 2009, many suspect that Google’s investment may have some defensive motivations, as well.  Invidi is based in New York and founded in 2000.

$23mm in Series D – Investors: Google (Shishir Mehrotra, Director of Prod Mgmt for Google TV Ads, YouTube Ads)(lead), with GroupM, Motorola Ventures, Menlo Ventures, InterWest, EnerTech Capital, Westbury Equity Partners, BDC Capital – Read more:  VentureBeat, TechCrunch reports that addressable TV adverts are 65% more efficient and 32% more effective

3. Ad.ly – (disclosure: I led the funding on Ad.ly) Provides an in-stream advertising platform for any content creator (individual or organization) with an online social presence.  Current publishers include Kim Kardashian, Mandy Moore, Deepak Chopra, and Newsweek.  Advertising clients include: Sony, Microsoft, NBC, and Clicker.  Following several completed advertising campaigns, Ad.ly has demonstrated both high user engagement and better than average conversion rates of 1%-3.5% (versus 0.05% for traditional display advertising) for February 2010.  Ad.ly currently has 70,000 publishers reaching 45mm readers.  Arnie Gullov-Singh (ex-EVP of product, technology and operations for MySpace) also joined as CEO, as Sean Rad will assume the role of President.

$5mm in Series A – Investors: GRP (Mark Suster)(lead), Greycroft Partners (Dana Settle), and Matt Coffin (founder of LowerMyBills) – Read more: TechCrunch, SoCalTech

4. Swipely – Blippy competitor founded by TellMe founder, Angus Davis, in Fall 2009.  Swipely is a social network orientated around users credit card transaction data.  Users can choose which transactions they would like to share (by category or individual transactions), choose to hide price data, add comments or notes to purchases, and express “like” or “dislike” sentiments for each purchase.  Swipely can even append transaction data with relevant information such as menus or store catalogs.

$7.5mm in Series A, following an angel round consisting of “millions” in seed capital – Investors: Index Ventures (Danny Rimer)(lead), Greylock Partners, with existing investors First Round Capital, Lowercase Capital (Chris Sacca), Keith Rabois (Slide), SV Angel (Ron Conway), Anton Commissaris (former VP at Mint) – Read more: TechCrunch, peHUB

5. Klarna – Klarna provides a service that allows consumers to purchase via invoices or on account (store credit) from online merchants.  The service allows users to shop by a personal identification number (instead of providing personal contact information or payment information) and pay by invoice (delayed cash on delivery) or account (credit).  Sellers can lower transaction fees by aggregating purchases into fewer transactions, while also providing buyers with an attractive alternative payment method.  Klarna is apparently the first European board for legendary Sequoia partner, Michael Moritz.

Rumored to be appox. $9mm – Investor:  Sequoia Capital (Michael Moritz) – Read more: TechCrunch, PaymentsViews

6. AdReady – Develops software tools and management platform that assists content publishers and ad agencies with the creation of display ads.  Primarily targets SMBs.  CEO/President is Karl Siebrecht (ex-Pres of Atlas at AQuantive and ex-GM of ad platform product management, search and display marketing, and mobile and gaming advertising for Microsoft).  Founded in 2006 by Aaron Finn.

$5.3mm – Investors: Madrona, Bain Capital, Khosla Ventures – Read more: TechCrunch

7. Criteo – Provider of online ad retargeting services and personalized recommendation service.  Leverages persistent cookie to follow a user and display recurring display advertising that matches a previous transaction intent or behavior.  Criteo was founded in 2005 in France; now based in Palo Alto, CA.

$7mm in Series C; last round was in 2008; total $24mm raised – Investor:  Bessemer (Byron Deeter)(lead); previous investor included Index Ventures, did not participate – Read more: TechCrunch, peHUB

8. WordStream – Provides software and services that help businesses manage SEM and SEO campaigns.  WordStream solutions both create, generate, manage and analyze the performance of large keyword databases.  On the show we also spoke about a company I really like called DataPop and how they help with keywords, AdSense text and landing pages.

$6mm in Series B; total raise of $10mm – Investor: Egan-Managed Capital, Sigma Partners – Read more: TechCrunch

9. Doxo (November 2009 financing, just announced in May 2010 as company exited stealth mode).  Paperless billing for consumers.  Cloud-based systems is compatible with major existing systems.  Senior exec team is ex-QPass (mobile payments platform sold to Amdocs)

$5.25mm in Series A – Investors: Mohr Davidow, Bezos Expeditions (Jeff Bezos) – Read more: TechCrunch

  • http://www.wac6.typepad.com William Carleton

    Mark, the changes in Dodd's bill to the definition of “accredited investor” is not the only bad thing in the bill for startups. Also devastating is a section of the bill that would make startups wait 120 days when filing under Rule 506 under Reg D. Sounds like you got into some inside baseball at this meeting about how to avoid even having to comply with Reg D by relying on 4(2), and that sounds savvy and cool and all, but most startups either have to use Reg D for their first funds, or end up having to do so. Waiting 120 days, or losing federal preemption (another possibility under Dodd's bill), could really make it unfeasible to raise modest amounts of seed capital under Reg D.

    This is all happening very real time. A number of us have been working to fix the problems for startups and angels in Dodd's bill, and this is now reflected in an amendment, SA 4037, introduced by Sen. Bond and co-sponsored by Sens. Cantwell, Warner and Brown. This was introduced only on Thursday. The debate on the bill could wrap up as early as next week. It is imperative, I think, that everyone in the startup community who knows about this write their senators and urge them to vote for SA 4037. More info on this at my blog, @joewallin's blog, and the Angel Capital Association site, http://www.angelcapitalassociation.org/resource… .

  • http://www.wac6.typepad.com William Carleton

    Mark, the changes in Dodd's bill to the definition of “accredited investor” is not the only bad thing in the bill for startups. Also devastating is a section of the bill that would make startups wait 120 days when filing under Rule 506 under Reg D. Sounds like you got into some inside baseball at this meeting about how to avoid even having to comply with Reg D by relying on 4(2), and that sounds savvy and cool and all, but most startups either have to use Reg D for their first funds, or end up having to do so. Waiting 120 days, or losing federal preemption (another possibility under Dodd's bill), could really make it unfeasible to raise modest amounts of seed capital under Reg D.

    This is all happening very real time. A number of us have been working to fix the problems for startups and angels in Dodd's bill, and this is now reflected in an amendment, SA 4037, introduced by Sen. Bond and co-sponsored by Sens. Cantwell, Warner and Brown. This was introduced only on Thursday. The debate on the bill could wrap up as early as next week. It is imperative, I think, that everyone in the startup community who knows about this write their senators and urge them to vote for SA 4037. More info on this at my blog, @joewallin's blog, and the Angel Capital Association site, http://www.angelcapitalassociation.org/resource… .

  • http://bothsidesofthetable.com msuster

    Thanks for the insights, William. Yeah, we talked about the Dodd bill more as an accidental by-product of our discussion on Reg D filing requirements. I appreciate your elaborating on that topic. re: PEHub's assertion that you can get around filing – we didn't spend too much time on it but I wanted people to know that some people had a view that you could temporarily get around filing.

  • http://bothsidesofthetable.com msuster

    Thanks for the insights, William. Yeah, we talked about the Dodd bill more as an accidental by-product of our discussion on Reg D filing requirements. I appreciate your elaborating on that topic. re: PEHub's assertion that you can get around filing – we didn't spend too much time on it but I wanted people to know that some people had a view that you could temporarily get around filing.

  • http://davidfishman.tumblr.com/ David Fishman

    Your blog's great. Lots of information in a compact space.

  • http://www.purchlive.com/ pipitpurch

    Your blog's great. Lots of information in a compact space.

  • http://bothsidesofthetable.com msuster

    Thank you. Appreciate the feedback.

  • http://bothsidesofthetable.com msuster

    Thank you. Appreciate the feedback.

  • Rahul Chaudhary

    Mark, a great tip about having an acceleration clause. Does an acceleration clause apply only to the founders or employees can also be protected with it?

    You mentioned that you met with a first time entrepreneur in the morning and you gave him a term sheet the same day in the evening. I know that you normally do not like to invest in first time entrepreneurs, so I would be curious to know what was different in this particular case?

  • Rahul Chaudhary

    Mark, a great tip about having an acceleration clause. Does an acceleration clause apply only to the founders or employees can also be protected with it?

    You mentioned that you met with a first time entrepreneur in the morning and you gave him a term sheet the same day in the evening. I know that you normally do not like to invest in first time entrepreneurs, so I would be curious to know what was different in this particular case?

  • shafqat

    Thanks for talking about Criteo (that's the one I wanted to hear about). I wonder why there aren't more of these retargeting companies popping up. There doesn't seem to be a huge technology barrier (persistent cookies) and if these guys are really minting money, I would have expected to see lots of competitors/clones. Thoughts?

  • shafqat

    Thanks for talking about Criteo (that's the one I wanted to hear about). I wonder why there aren't more of these retargeting companies popping up. There doesn't seem to be a huge technology barrier (persistent cookies) and if these guys are really minting money, I would have expected to see lots of competitors/clones. Thoughts?

  • http://bothsidesofthetable.com msuster

    re: acceleration – often only applies to “key” employees. But every company is different.
    re: first time entrepreneurs – never said that. I said I prefer second time entrepreneurs but that I would never exclude anybody. I have know this guy for 2 years, followed him when he started his project, know all of his angel investors and love his concept. So I knew much before we even had our first meeting.

  • http://bothsidesofthetable.com msuster

    re: acceleration – often only applies to “key” employees. But every company is different.
    re: first time entrepreneurs – never said that. I said I prefer second time entrepreneurs but that I would never exclude anybody. I have know this guy for 2 years, followed him when he started his project, know all of his angel investors and love his concept. So I knew much before we even had our first meeting.

  • http://bothsidesofthetable.com msuster

    I think there actually are quite a few competitors.

  • http://bothsidesofthetable.com msuster

    I think there actually are quite a few competitors.

  • Rahul Chaudhary

    Thanks for the reply.
    re: first time entrepreneurs – I did not mean to say that you would never invest in first time entrepreneurs. I guess I should have used the word prefer instead of like to make it clear. :-)

  • Rahul Chaudhary

    Thanks for the reply.
    re: first time entrepreneurs – I did not mean to say that you would never invest in first time entrepreneurs. I guess I should have used the word prefer instead of like to make it clear. :-)

  • http://www.belgravetrust.com Nicholas Baily

    The Dodd bill had a variety of problems that had specific impact on VC's, especially angel investors. (Self promo: I was advocating against them in a few places, most notably at the Huffington Post: http://bgt.st/b2oKFn ). There were a variety of groups that noticed, ACA among them, also especially the Kauffman foundation and Bob Litan. My understanding is that the most onerous problems are slated for demolition and there's little chance of them staying in any final bill, but you never know until you know.

  • http://www.belgravetrust.com Nicholas Baily

    The Dodd bill had a variety of problems that had specific impact on VC's, especially angel investors. (Self promo: I was advocating against them in a few places, most notably at the Huffington Post: http://bgt.st/b2oKFn ). There were a variety of groups that noticed, ACA among them, also especially the Kauffman foundation and Bob Litan. My understanding is that the most onerous problems are slated for demolition and there's little chance of them staying in any final bill, but you never know until you know.

  • http://www.wac6.typepad.com William Carleton

    Nicholas, through the end of last week, the only amendments introduced that would fix the accredited investor threshold increase problem were one introduced by Sen. Brown alone, and then SA 4037, introduced Thursday by Sen. Bond, with Sen. Brown among the co-sponsors (he'll presumably withdraw his own amendment). Sen. Bond's bill also fixes the 120 day wait period for Rule 506 Reg D offerings that is at Sec. 926 of the Dodd bill.

    It is Sen. Bond's amendment that contains the fixes endorsed by the ACA.

    Dan Rosen of the Seattle Alliance of Angels, Joe Wallin of DWT, and I analyzed what the Bond language would do in a post in Techflash here: http://www.techflash.com/seattle/2010/04/rules_… The title of the post is a bit premature as the amendment must still be passed!

    I think everyone should be contacting their senators now asking them to vote for this amendment, and indeed to prioritize it as Sens. Reid and Dodd look to bring closure to the debate.

    Sent from my iPad

  • http://www.wac6.typepad.com William Carleton

    Nicholas, through the end of last week, the only amendments introduced that would fix the accredited investor threshold increase problem were one introduced by Sen. Brown alone, and then SA 4037, introduced Thursday by Sen. Bond, with Sen. Brown among the co-sponsors (he'll presumably withdraw his own amendment). Sen. Bond's bill also fixes the 120 day wait period for Rule 506 Reg D offerings that is at Sec. 926 of the Dodd bill.

    It is Sen. Bond's amendment that contains the fixes endorsed by the ACA.

    Dan Rosen, Joe Wallin and I analyzed what the Bond language would do in a post in Techflash here: http://www.techflash.com/seattle/2010/04/rules_… The title of the post is a bit premature as the amendment must still be passed!

    I think everyone should be contacting their senators now asking them to vote for this amendment, and indeed to prioritize it as Sens. Reid and Dodd look to bring closure to the debate.

    Sent from my iPad

  • http://platform.newscred.com shafqat

    Just spent some time researching, and there are certainly a few competitors but none of them seem to be killing it….

    But…Google just launched retargeting as part of Adwords last month. While some might think that this will kill a lot of the startups in the space, I think it just reinforces that there is some real value and opportunity here….

  • http://platform.newscred.com shafqat

    Just spent some time researching, and there are certainly a few competitors but none of them seem to be killing it….

    But…Google just launched retargeting as part of Adwords last month. While some might think that this will kill a lot of the startups in the space, I think it just reinforces that there is some real value and opportunity here….

  • Rahul Chaudhary

    I don't have any personal experience with Right Media, but heard some good things about them in the past. It was acquired by Yahoo in 2007 and not sure how they are doing currently though.

  • Rahul Chaudhary

    I don't have any personal experience with Right Media, but heard some good things about them in the past. It was acquired by Yahoo in 2007 and not sure how they are doing currently though.

  • http://www.justinherrick.com Justin Herrick

    This really was a great episode, maybe next time I'll try to write up a summary of my thoughts of the episode, but a nice short-hand would just be for me to agree that this was one of the best.

  • http://www.justinherrick.com Justin Herrick

    This really was a great episode, maybe next time I'll try to write up a summary of my thoughts of the episode, but a nice short-hand would just be for me to agree that this was one of the best.

  • http://giffconstable.com giffc

    I always assume that anything I tell a VC has the potential to make it to a competitor. And on more than one occasion in my career, it has. But then I also believe that a startup should obsess about it's own execution and it's own interactions with customers, not obsess over competitors, so I don't think this should paralyze an entrepreneur or prevent them from getting out there and talking to people.

  • http://giffconstable.com giffc

    I always assume that anything I tell a VC has the potential to make it to a competitor. And on more than one occasion in my career, it has. But then I also believe that a startup should obsess about it's own execution and it's own interactions with customers, not obsess over competitors, so I don't think this should paralyze an entrepreneur or prevent them from getting out there and talking to people.

  • http://flash80.tumblr.com/ Jonathan

    Hi Mark, I love the show and hearing the perspectives you and guests bring on the future of the web and technology.

    I had a question about first-time entrepreneurship which is a topic you have touched on in a few episodes including this one. You mentioned that a pitch could be made with some mock-ups if resources are low and technical skills are scarce. Is this something that still happens? How does an idea/pitch like this get the attention of a VC or Angel?

    I guess the underlying questions is really what should you do if you have an idea but no capital and no technical skills?

    P.S. is anyone else having trouble with the F-connect function or any login function in this Disqus comment thread?

  • http://flash80.tumblr.com/ Jonathan

    Hi Mark, I love the show and hearing the perspectives you and guests bring on the future of the web and technology.

    I had a question about first-time entrepreneurship which is a topic you have touched on in a few episodes including this one. You mentioned that a pitch could be made with some mock-ups if resources are low and technical skills are scarce. Is this something that still happens? How does an idea/pitch like this get the attention of a VC or Angel?

    I guess the underlying questions is really what should you do if you have an idea but no capital and no technical skills?

    P.S. is anyone else having trouble with the F-connect function or any login function in this Disqus comment thread?

  • http://www.willanjohnson.com Willan

    Mark – Great blog and new video series. Jim Armstrong is one of my favorite guys in LA, and Jason is always fun to listen to.

    A quick note about SocialVibe. I actually left the company in October to run a roll-up (traditional services) based here in LA. But I do think you guys are a little off about SocialVibe and your comments about converting debt, traction, etc. They have taken their model (monetizing a database of branded engagements) and moved beyond a charity play to more of an in-game model (i.e., offering Farmville users the opportunity to earn farmville bucks by engaging with a branded ad). And there are many other forms of benefit (besides charity donations and in-game currency) that the company could capitalize on.

    http://www.brandweek.com/bw/content_display/new

  • http://www.willanjohnson.com Willan

    Mark – Great blog and new video series. Jim Armstrong is one of my favorite guys in LA, and Jason is always fun to listen to.

    A quick note about SocialVibe. I actually left the company in October to run a roll-up (traditional services) based here in LA. But I do think you guys are a little off about SocialVibe and your comments about converting debt, traction, etc. They have taken their model (monetizing a database of branded engagements) and moved beyond a charity play to more of an in-game model (i.e., offering Farmville users the opportunity to earn farmville bucks by engaging with a branded ad). And there are many other forms of benefit (besides charity donations and in-game currency) that the company could capitalize on.

    http://www.brandweek.com/bw/content_display/new

  • http://bothsidesofthetable.com msuster

    Thanks, Willan. I appreciate your clarification on the new focus of SocialVibe. I guess they forgot to update the website with the new direction? It is clearly positioned still as the old SocialVibe. Hope your new biz is going well.

  • http://bothsidesofthetable.com msuster

    Thanks, Willan. I appreciate your clarification on the new focus of SocialVibe. I guess they forgot to update the website with the new direction? It is clearly positioned still as the old SocialVibe. Hope your new biz is going well.

  • http://www.willanjohnson.com Willan

    Mark, not sure why they haven't updated the team information on the charity-focused website. However, they have launched a new site at http://www.svnetwork.com that reflects the new positioning, shares the right team info, etc.

  • http://www.willanjohnson.com Willan

    Mark, not sure why they haven't updated the team information on the charity-focused website. However, they have launched a new site at http://www.svnetwork.com that reflects the new positioning, shares the right team info, etc.

  • http://bothsidesofthetable.com msuster

    Thanks. Just read it. And Jay is actually listed there! Sounds like they need somebody in marketing to harmonize these two sites!

  • http://bothsidesofthetable.com msuster

    Thanks. Just read it. And Jay is actually listed there! Sounds like they need somebody in marketing to harmonize these two sites!

  • http://www.kidmercuryblog.com kidmercury

    i am glad you guys decided to talk politics about dodd. thank you for doing that, as doing so benefits the entire VC/entrepreneur community.

    i am also glad you concluded dodd's proposal was not good. i think that will be a common perspective in our community, as most who are honest with themselves will be able to see it for the power grab/theft that it is.

    so now that you've talked about it and agree it is bad, i hope you'll take the next step of doing something about it. creating an environment to do business that does not depend on government regulation will increasingly be the answer, and the solution i think is most obvious is to create internet communities that operate according to their own standards. not regulation D, but something else.

    as media is used to build communities, it is natural for media to play an important role here.

    if you and jdawg ever want a community where you guys can intermediate startups and investors (and get a piece of the investments for intermediating the transaction), let me know. all it requires is badges which illustrate the rules (i.e. regulation D badge), a badge council (basically the government), and a virtual currency, which is the magic ingredient that unleashes all the economic value.

    this is how we stay stealth while getting the benefits of doing business in public.

    anyway, something for you and jdawg to consider. i will be illustrating a sample model on my blog over the next couple weeks as i introduce more badges and continue redesigning my site. i'll email you when it's ready.

    regardless of whether you would like my services, i hope now that you have begun to speak about the problem, you will find your own way to take the next step and solve the problem.

  • http://www.kidmercuryblog.com kidmercury

    i am glad you guys decided to talk politics about dodd. thank you for doing that, as doing so benefits the entire VC/entrepreneur community.

    i am also glad you concluded dodd's proposal was not good. i think that will be a common perspective in our community, as most who are honest with themselves will be able to see it for the power grab/theft that it is.

    so now that you've talked about it and agree it is bad, i hope you'll take the next step of doing something about it. creating an environment to do business that does not depend on government regulation will increasingly be the answer, and the solution i think is most obvious is to create internet communities that operate according to their own standards. not regulation D, but something else.

    as media is used to build communities, it is natural for media to play an important role here.

    if you and jdawg ever want a community where you guys can intermediate startups and investors (and get a piece of the investments for intermediating the transaction), let me know. all it requires is badges which illustrate the rules (i.e. regulation D badge), a badge council (basically the government), and a virtual currency, which is the magic ingredient that unleashes all the economic value.

    this is how we stay stealth while getting the benefits of doing business in public.

    anyway, something for you and jdawg to consider. i will be illustrating a sample model on my blog over the next couple weeks as i introduce more badges and continue redesigning my site. i'll email you when it's ready.

    regardless of whether you would like my services, i hope now that you have begun to speak about the problem, you will find your own way to take the next step and solve the problem.

  • http://arnoldwaldstein.com awaldstein

    Yes they do but they are lucky to have Jay at the helm.

    And Mark…I'm on a search for charity-based platforms for clients where funds can be raised on e-commerce websites and funneled to causes. If you know or others know, please share these.

  • http://arnoldwaldstein.com awaldstein

    Yes they do but they are lucky to have Jay at the helm.

    And Mark…I'm on a search for charity-based platforms for clients where funds can be raised on e-commerce websites and funneled to causes. If you know or others know, please share these.