Angels or Icarii?

The first article of my VCFAQ column ran in TechJournalSouth this week. Although the paper-based column allows me to go deeper on topics I might just touch here, I hope VCFAQ, like FVB, can also be a place to share questions and answers from the venture game. Enjoy and let me know your comments/questions...

Florida Posts 2nd Fastest Tech Job Growth in the US

The AeA just announced the results of their Cyberstates 2006 report and Florida had an impressive showing. Some fun stats include:

• 265,500 high-tech workers (4th nationwide)
• 19,800 high-tech establishments (3rd nationwide)
• $11B high-tech exports, 1/3 of all FL exports (3rd nationwide)
• 3rd nationwide for telecom services, communications equipment and engineering services employment

I expect these numbers are heavily influenced by defense spending and LatAm tech exports, but that provides a nice foundation and hiring pool for our growing venture-backed tech sector. Early stage dollars continue to be a missing piece of that puzzle, but we're moving in the right direction...

Enter the IOS Matrix

I've shared some fun web mashups before, but they grow/improve daily. John Musser over at ProgrammableWeb has built a terrific resource site on Web 2.0 as a Platform -- or, as I see it, the coming Internet Operating System (IOS) -- and your mind goes hyphy on what is possible. Although Web 2.0 is often defined by user data generation such as blogs, podcasts etc., larger Web 2.0 ramifications are likely to come from synergistic linking of data & APIs. The platform is still playing with one hand behind it's back because only a handful of companies recognize the value of releasing their APIs today -- but that will change.

I encourage you to checkout ProgrammableWeb and have fun with John's tool: Web 2.0 Mashup Matrix. It may become the software catalog for tomorrow's IOS...

VC Champions of the World

With all the Championship hoopla of late, wouldn't it be fun if there was a monster venture fund bracket and a battle to the death to crown a venture capital Champion? Well, there is, kind of.

UNC's Venture Capital Investment Competition includes over 50 student venture capital teams from across the world. They battle through multiple wildcard, regional and even international brackets to reach the finals at my alma mater in Chapel Hill, NC. Congratulations to 2006 Finalists Washington, NYU, Michigan, Colorado, Cambridge, Duke, Harvard, MIT and USC. I was lucky enough to judge the Finals this past weekend and the level of venture talent is impressive -- virtual pros compared to when a small group of us started the competition at UNC in 1998.

Turning the tables on the typical business plan competition, VCIC student teams operate as a virtual venture fund. They review multiple business plans and pitches by real entrepreneurs and businesses pursuing funding -- thanks to 2006 entrepreneur presenters from Broadwick, Advanced Liquid Logic, DateApp, Cary Pharmaceuticals and S-Bond Technologies. They then perform due diligence with entrepreneur grilling and online research over the next 24 hours. Finally, they decide who they would back, who they wouldn't, draft termsheets and present why they made the decisions they did -- typically pulling an all-nighter in the process.
This year's lineup of judges was impressive as well, including experts from Grove Street, Parish, Synecor, , Meritage, Firelake, RTV, SV Life Sciences, Atlas, Aurora, Mohr Davidow, Kleiner, L Capital, Piper, Kauffman, Bluegrass, PE Week Wire (See Dan Primack's VCIC recap here), and one nut from Inflexion. Can you believe students actually volunteered to be tortured by Q&A from this crew?

In the end the University of Washington came away with the biggest check (and the bar tab later). Their team members and victory have already been noted at John Cook's Venture Blog at the Seattle Post-Intelligencer. The whole UW team did a stellar job and I give presentation/leadership kudos to Rebecca Lovell -- fantastic presence and entrepreneur rapport.

Speaking of rapport, that was a key item that separated the teams walking away with checks from those walking away with just a great experience. Although business school can prepare you for the numbers and analysis of business opportunities, it takes time and experience to appreciate how much of this business (and all business) boils down to people. A smart, young investor who finds passionate entrepreneurs and builds relationships before building spreadsheets has a promising future in the venture business.

Thanks to Patrick Vernon and the whole VCIC team at UNC's Center for Entrepreneurial Studies for running a great event. If you're a student, entrepreneur or venture capitalist, I'd encourage you to learn more about UNC's VCIC -- the launchpad for tomorrow's venture capital leaders...

Dream Big

The Gators did it -- going from unranked preseason to NCAA Men's Basketball National Champions. According to Sophomore star and sound-bite machine Joakim Noah, it feels so good he can smell it and taste it. Defensive whiz and my pick for future NBA scoring force Corey Brewer (and multiple teammates) commented that this is something they always dreamed about -- winning it all.

That's great for us Gator fans, but what's in it for the rest of you...big dreams!

I've always believed that dreaming big is a key, yet rarely discussed talent of top entrepreneurs. I don't just mean dreams/motivational speeches of a garage startup beating the competition, I mean personal dreams that allow an entrepreneur to smell and taste what success will make possible. Building a world-changing company is hard work and will test the smartest and most experienced management teams out there. The entrepreneurs that can visualize why they are putting in the crazy hours, enduring the board pressures and testing their family's patience are the ones that will emerge from the startup crucible whole and victorious.

Although big dreams are often personal, a recent news tidbit makes good dream fodder. Hungarian-born billionaire, Charles Simonyi who helped Microsoft create Word and Excel is paying $20M and training for a flight to the space lab. He will be just the 5th private tourist to go into space. Although some people scoff at blowing $20M on such a voyage, I love it (and I'm not even a space nut)!

If you're going to dream, don't settle for a fast car or a beachfront condo with 1000 neighbors, dream big about buying the first XKE ever made or shooting the tubes off your own South Pacific island, and then keep fighting until you're there.