Startup Lessons for 2007

I started a post the other day about specific trends and types of companies that we have been focused on recently. And then I came across this post in Read/Write Web which did the job for me. The author (who is the founder of a geek social networking site called Shuzak.com) lays out 6 lessons that nascent Internet startups should heed.

In order they are:

1. Differentiate yourself - find a category you can conquer rather than trying to take on the world
2. The smaller the niche, the more loyal the users
3. Focus
4. No small market is small enough
5. Keep everything simple
6. The bubble burps - stick with your category and try to hold onto it

On the whole, this is good advice for anyone trying to develop a social-network/user generated application or site. From the VC perspective, I can wholeheartedly recommend following numbers 1, 3, and 5.

(As for 2, 4, and 6, while it's true you can make a good living from a very highly targeted site, if you are running a social network for, say, owners of Persian cats, the chances that you will become a major player aren't great)

I think the Web still has plenty of untapped potential. IMHO the real winners of the next few years are going to be those companies that find an unserved niche or target vertical (of a relatively decent size) and focus on providing them with a simple and attractive solution.

Comments

[lior]

I think focus is really the most importent thing. many people tend to try marketing to everyone.