$12,107.09
That’s how much it cost Guy Kawasaki to launch Turmers: a Web 2.0, User-Generated Content, Citizen Journalism, Long-Tail, Social Media Site.
The reason this is interesting is because Guy’s day job is as a coffee gofer (or something like that) at a Silicon Valley Venture Capital firm. If Guy, and just about anyone else, can start an Internet company for $12,000 or less, then why on earth do we need venture capital firms in the Internet space?
For Internet Startups, if your idea needs more than $100,000 to get it off the ground, it’s probably not a very good idea. If you don’t already have $100,000 saved up for this “great idea” of yours, you’re probably not qualified to manage $100,000 in Investor capital.
So I ask you - What purpose does the venture capital firm serve? Are they nothing more than Ponzi scheme pimps decked out in business suits?
Because it sure smells like it.
5 Responses to “VC Guy Kawasaki Proves Venture Capital is Unnecessary”
And if you notice some of the comments in his post, people are asking how the hell did you spend $12,000 — many people are used to launching things a lot cheaper than this.
1. Truemors is a glorified Wordpress plug-in for fuck’s sake. It hasn’t “proven” anything and has thus far been a waste of money:
http://www.uncov.com/2007/5/17/guy-kawasaki-should-stick-to-contentless-blog-posts
2. Guy Kawasaki has essentially conceded defeat and acknowledged that it’s a flop:
http://valleywag.com/tech/guy-kawasaki/you-can-do-a-lot-more-stupid-things-265843.php
All this debacle has “proven” is that you can get overpay $12K to some dipshit third-rate programmers to set you up yet another worthless “Web 2.0 long tail social media” bullshit site.
[…] Guy Kawasaki on how much it cost to launch Truemors, in conduction with how to make a billion bucks and You Don’t Need VC money gives you a nice complete picture. […]
I always have felt bad for the VCs, they just go after the really crappy investments all the time, while others are gaining market share and receiving funds consistently. I think it’s hilarious, because there are so many ways to make money online, with just $50k, you can become Dane Cook/create a Squidoo/whatever one may ever think of. What were FeedBurner/DoubleClick’s expenses over time and how much was needed for investment? I don’t believe there ever was a lot.
The only reason I think VCs exist is for advice, support, counsel and scalability.
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Right, and everybody has a top 20 technorati blog with thousands of daily readers and media centers just waiting to cover our every move.