My theory is called "Open Source VC"
Arun Natarajan posted a blog called “Sand Hill Road Gets Blogging. Arun asked me to elaborate on my comment that blogs will become a primary due diligence vehicle going forward.
My theory of this paradigm change is based upon a new model of information or deal flow that the Internet creates. VCs who take advantage of it will be winners.
To highlight my thinking one only has to read Coase's Penguin by Yochai Benkler. This open source VC theory follows Benkler's thinking. Blogging is a phenomenon. Tony Perkins at the recent AO Summit calls this site and it’s vision "open source media".
Blogging evolution is the idea that involves thousands or even tens of thousands of individuals contributing to large and small scale blogs, ideas, or projects, where the central organizing principle is that the access remains free and most of the constraints are on subject matter and personal credibility. No one "owns" the rights in the traditional sense of being able to command how it is used or developed, or to control its disposition. The result is the emergence of a vibrant, innovative and productive collaboration, whose participants (in most cases) are not organized in firms and do not choose their projects in response to traditional ways but instead converge on common interests.
As an example, I have two main areas of expertise where I’m developing patents and product ideas: search infrastructure and broadband wireless. I’ve met several folks here at AO who I’ve never met that I could reach out on matters related to broadband wireless. On other blogs you have Brad Feld in VC (among others) and John Battelle for search and online advertising. Here I have access and can contribute thoughts too and collaborate with these folks…10 years ago this type of access both personally and intellectually where not available without serious time invested networking.
This paradigm of new information access will (and is changing) the VC world. It’s soon to be an “Open Source VC” industry.
Comments