On Saturday Fred Wilson wrote a post on the Union Squares blog announcing that they have added a new fund that will let them make larger investments (up to $25m). That is an interesting development in its own right, but more interesting to me was the way he describes the difference between investing in web services and other older venture capital categories:
Early on, we recognized that investing in web services was different than investing in chips, routers and enterprise software. The start-ups are more capital efficient. Differentiation is more about user experience than proprietary technology. Defensibility is more about network effects than patents.
To read the full, original article click on this link: Fred Wilson on the differences between web investing and traditional venture « The Equity Kicker
Author: Nic Brisbourne
