Two of the best sessions at this week’s Mesh Conference in Toronto were the ones related to Web 2.0 and VC money. Don’t know which inspired me more, Paul Kedrosky’s or Rick Segal’s. Mark Evans of the National Post condensed his thoughts in his article published today (which he lobbied to get pulled out from behind the “walled garden” of subscription only). Here are some excerpts from his article:
There is, however, some evidence the environment is changing. For one, Web 2.0 entrepreneurs don’t need large amounts of money because they can use free open-source software, and low-cost hardware and network bandwidth to develop and distribute a new Web-based service.
This means entrepreneurs can take an idea and create a business without worrying about whether they can get financed. This is a healthier approach because the start-ups that are successful in attracting customers and generating revenue have better leverage when they decide to pursue venture capital to jump-start growth.
At the same time, some VCs have started to realize they need to behave differently if they want to play in the Web 2.0 world. They need to be more aggressive, they need to take more risk and they need to accept the reality that financial success could come from a variety of small investments rather than a few large opportunities.
It appears VCs could have an easier time discovering new Web 2.0 start-ups if the enthusiasm and energy of the entrepreneurs who gathered at the mesh conference is any indication. Some of the companies to watch are DabbleDB, iUpload.com, Freshbooks.com, B5Media, Bubbleshare.com, EndlessEurope.com and Octopz.com.
This is an new and exciting time for Canadian Tech. More sharp people are getting their ideas out and some forward-thinking VCs are getting in on the game.