So many have posited that Web 2.0 is a threat to the venture capital model. I think that's totally wrong. Web 2.0 is a gift to the venture capital business and I'll explain why.
I've been investing in web startups for over 10 years. I was a very active investor during the first incarnation which we now call web 1.0. And I've been an active investor during this incarnation, which we now call Web 2.0. I've been involved in more than fifty web startups through Flatiron Partners, Union Square Ventures, and a number of angel investments.
And I have paid close attention to the capital requirements of all of these businesses. When you write the checks to keep the project going, you generally have a good sense of how much it all costs.
