First came the microstartups, then came the micro VCs
I strongly believe in the notion of the microstartup, as defined in a Jason Calacanis essay back in November 2008 called The Future of Startups. Here’s the short definition:
The zero cost startup has led to the age of the “microstartup.” It’s no longer two folks in a garage hoping to build a prototype in order to land a huge VC round, then getting millions of dollars to build out an office. Microstartups are sustainable from prototype to launch and on to a core user base, all for around $5-10,000 in costs.
It’s all about super low cost, low overhead, fast iterative releases, and high engagement with audience and customers. It simply makes sense that these kinds of companies are the ones that are going to innovate in this “post web 2.0 era” and in this crowded and noisy Internet space that we’re all playing in.
And so it’s interesting that a Calacanis piece also pointed me to a new $300 million “micro VC” fund launched by Marc Andreessen and Ben Horowitz.
The technology industry has never been more inclusive, what with folks like Y-Combinator, BetaLabs and Founder’s Fund doing smaller investments and now this. If you’re looking to raise capital it’s fairly simple: go to the Valley, pick a growing market and get two or three qualified folks to work with you on tackling that market. The money will then show up–even for first time entrepreneurs–if you pick a growing market and try to kill it.
I’d counter that you don’t necessarily have to base yourself out of Silicon Valley, but nonetheless the implications of this fund’s launch are pretty great for innovators, entrepreneurs on the make, and people who care about seeing the Internet economy flourish.
