The Milestone Group has an interview with Brad Feld, Managing Partner, Mobius Venture Capital. Excerpts:
Milestone: So how can a startup find space large enough to attract venture capital but not too large to attract strong competition early from the big players in any given space?
Feld: I don’t think the best entrepreneurs worry about the big players. The big players are inevitably going to be attracted to opportunities that are meaningful and significant. The resulting challenge for the entrepreneur is to out-innovate and be more agile, effectively, in what they are creating in a larger player. When I started doing this 10 years ago, the question everybody asked is Why cant Microsoft do that? The question now of course is Why cant Google or Yahoo do that? Its just an irrelevant question; of course they can do that. In software, specifically, the barrier to innovation is human creativity and software engineering skill. The ability to synthesize things and modify them and react to customer needs, service the customer better and build something that is compelling. Doing it faster is the competitive advantage for a start up, not identifying something that is just the right size to be big enough but not too big.