Bullshit 2.0

It's been a while since I've personally blogged.

Since August 2008, I've been on the road talking with several groups of potential investors about our Series B round. It's amazing to me to see how naive some of these investment firms are. Many of them are so sucked up in the "web 2.0" frenzy that they are writing big checks to tons of companies who don't have a shot in hell of making it. Honestly, it's pure bullshit. Whatever happened to having a sustainable business model? You know, one that actually makes money?

There are basically two types of web 2.0 companies:

1) Grow like hell and hope Google or Microsoft buys us before they have to make revenue. These web 2.0 companies get a ton of money in their investment rounds, burn it quickly, and hope they get bought before they run into trouble. Sadly, most investors are attracted to this type of company. They all want to be involved with the next Skype. Anyone who has half a brain knows that most of these types of companies will fail miserably. Truly bullshit.

or

2) Build a company on a shoestring budget, whip your competitors with your technology, become profitable, and then put together a REALISTIC growth plan based on research and experience. This is Sway. Believe it or not, most investors still like option 1 better. Whatever happened to getting rewarded for hard work, keeping your expenses to a minimum, and actually proving your business model? Bullshit, eh? You're right!

After going through the entire investment circuit, I think I've finally found a capital firm that gets it. Though we are in the initial stages, I feel optimistic about a deal. I'm eager to find out how quickly we can scale now that we are almost through all the bullshit.

Thanks for letting me vent.:)

-Jason Weaver