We are witnessing
dramatic changes
in software and the Internet.
Open-source
is having a
significant effect on the market for enterprise applications requiring hybrid business models that incorporate services for revenue generation. Technologies including
XML
and
Ajax
are transforming the Web from a communications medium into a full-scale platform for software applications.
Web services
and
Open API’s
have created new possibilities for
creative extensions
to existing applications.
Folksonomies
and aggregated content are increasing the importance of
words for brand building. And
Wiki’s
have created a new open model for collaborative content creation.
Most importantly,
blogging
,
social networks and applications built on
LAMP-stack
architecture are enabling entrepreneurs to locate, form and lead virtual teams to bootstrap the creation of capital efficient software enterprises.
We not only recognize these changes, we have incorporated them into our model for
Venture Capital 2.0
. These developments and
other factors
have lead some to believe that a profound
structural impact
is transforming venture capital. Regardless, it is clear to us, these developments require changes to
existing models
for early-stage investing.
Posted by Clarence Wooten on
May 28, 2005
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