Transcript

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Erik: What do you consider when evaluating internet start up companies?
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Marc: The key thing is don’t get hung up on one idea. Once you can do that you’ve
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liberated yourself, you’ve set yourself free in a lot of ways. Ideas are like subways,
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you miss one there’s one right behind it there’s always a chance to change the world,
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there’s always a chance to change the way people do things and so you can never get
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to attached to a single idea. Then there becomes this vetting process, you look at it, you
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know whether its a risk-reward or a vetting of the idea, first you do some basic research.
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You look around and who else is doing it? Is there anyone doing it? Is there anyone
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doing in the way that you think it will do it? Then you say will anyone want to buy this
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idea? Is this interesting? There’s people who want to do this. Then you continue on
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to, you know you, whether that its initially its just some basic research then you get
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out there and you talk to people and see if the idea plays then you, then you start looking
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at what’s the business model? A lot of time especially with web 2-0 companies they just
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build something cool and they forget about the business model, but you should at least
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have kind of an idea of what it could be, you know where could it possibly come from
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and then you also start to look at what’s it going to cost? What’s the start up cost?
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Is it a company where I can start for a very little amount of money or is it like an enterprise
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company where I have to hire a team of enterprise sales guys which is typically very expensive,
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or is it a huge infrastructure play where I have to buy, you know I have to spend a
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lot of cash, raise a lot of cash? So all those pieces kind, kind of… you slowly vet those
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ideas out and if the answer is negative, if it’s not that answer you want in any one
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of those cases, drop the idea. Its okay, there will be another one, there will be plenty
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more. You know it’s not a big deal, don’t get too attached to them. As you go through
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this vetting processs and each, you know, different types of business have slight variations
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on the vetting process its just important to remember that, that its okay to drop it.
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And so typically at any point in time I’m mulling over you know anywhere, kind of, from
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5 to 7 ideas that you know that could or might be interesting, might not be interesting.
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And you just keep em’ going in the back of your head. And then over time, a lot of
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times, they’ll just kind of either, you know they’ll drop off or they’ll become
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real. And if they become really real, well then it might be time to actually do it.

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