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Web 2.

0
Internet Entrepreneurship in
2009: Where's the Opportunity?
Overview
• The Last Few Years

• Recently

• The Future

• What Can Tech Entrepreneurs Do?


Technology
Entrepreneur
Professional
Blogger
Sci-Fi Writer
(Hobby)
The Last Few
Years

Web 2.0
Social Media
Growth Models
Not Revenue
Models
• 2006: Twitter Founded

• April 2007: SXSW


• July 2007: $4.8 Million Series A

• May 2008: $15 Million Series B


• 2008 Growth: 752%
Didn’t We Do
This Before?
But Then…
Layoffs
Zazzle: 40 Fring: 10
AOL: 700 Technorati: 6
Digg: 7
Modu: 88
Federated Media: 7
Circuit City: 34,000 Qik: 5
Autodesk: 750 Sun: 5,000
Google: 100 Metacafe: 11
Pbwiki: 4 Veoh: 20
IBM: 2,850
Now What?
2009: What
Will Happen?
1
2
Bootstrapping
Bootstrapping
3
Profit Will
Matter!
Efficiency
• Burn Rate

• Perks

• Staff

• Business Models
4
Ad-Supported
Models Will
Weaken
• 2008 Revenue: $8.5 million

• 2008 Costs: $14 million

• Layoffs: 7

• Tom Shin
So What Can Tech
Entrepreneurs
Do?
“There's a lot of talk about creative
destruction and renewal and many
are looking at the venture backed
tech companies to lead the way in
renewal and job creation.”

- Fred Wilson (VC, Union Squares)


1
Remember…
Revenue – Cost
= Profit!
Venture Capital +
Growth = Profit
An Example…
What’s the difference?
2
Pick Your
Platform
Carefully!
3
Leverage
Online Tools
4
You Don’t
Need 752%
Growth
What Do They Have In Common?
Profitable
Finally…
Bootstrap
First.
“Entrepreneurs that start and run
small businesses will be the
propellant in this economy.”

- Mark Cuban
Questions?
Social Media
• Blog: benparr.com

• Twitter: twitter.com/ben_parr

• LinkedIn: linkedin.com/in/benparr

• Facebook: At this point, just ask for my card…


Startups to
Watch
11% of the
Internet
Defined:
• Social Media is the use of electronic and
Internet tools for the purpose of sharing
and discussing information and
experiences with other human beings.