Disqus - Latest Comments for Michael Cayley

Re: The appeal of Twitter — part XVII

Michael Cayley — Mon, 25 Feb 2008 19:24:46 -0000

Here is a cool visualisation of the Twitter network published by MIT Technology Review:

http://www.technologyreview.com/Biztech/20223/p...

Re: The power of links and the value of global knowledge

Michael Cayley — Thu, 24 Apr 2008 18:38:19 -0000

Not just someone.

Because corporate valuation is increasingly linked to the social capital embedded in these links, every corporation is going to begin investing into further understanding of these links.

Interesting that this post is so on topic. I landed here searching for you, since I have referred to some of your work in an e-book that I am going to release that makes the argument that social capital is linked to corporate valuation and I want you to take peek before it goes out. If you get in touch, I will send you a link to the paper.

Cheers,
mc

Re: Your Facebook app is a disaster, and I was right.

Michael Cayley — Fri, 29 Feb 2008 17:07:44 -0000

Amen Jevon. As part of a marketing strategy, a Facebook app makes sense. But not if it is your only marketing pony or you are focusing your entire biz on it. Facebook is only one "small world" of the "social graph" and you are bound to only obtain a group within that. Interesting though that philanthropy reasonates, achieving millions and millions of users over all. A marketing strategy that leveraged that dynamic to bring folks into a new service would be smart. Squidoo has one attempt at this.

Re: $205M Ontario Venture Capital Fund

Michael Cayley — Thu, 12 Jun 2008 21:07:52 -0000

I am not a doctor, but I play one on T.V.

That sort of covers my depth of analysis here. I am not an expert on how to make the VC ecosystem better, but about three months ago I had lunch with someone who is and we talked about the Ontario government's approach.

Jonas' points and Mark McQueen's post both do a good job at covering the shortcomings of this plan. I.e., reinvesting in the same players and not zeroing in on domestic seed/venture funding.

I do not think that there is a shortage of entrepeneurial talent and energy. As some have pointed out, government regulation/programs/tax breaks are actually pretty good in Ontario. And while it is nice to see the Ontario government stepping in to address the VC crisis in this province, few authentic capitalists would argue that it is government's job to be a venture captial market maker. Just get out of the way.

And if you are going prime the pump with some cash, try to stimulate some competition and establish high value links to global VC markets instead of reinforcing the tightly bound social network that can sometimes stifle innovation (as I recently wrote about in the MESH, unMESH post over at www.socialcapitalvalueadd.com).

Here's what I remember from that lunch. The nachos were good. Israel seemed to have come up with the model worth emulating and Peru has emulated it with some success.

In those cases, the government basically provided enough funds to convince top tier US venture firms to open a local office (with the Americans contributing some matching funds). Typically a VC partner with a winning record opened the office. The startups received the value add of that experience, the experience of successful partners in the US and most importantly, a bridge into the US market for follow on rounds and marketing.

These foreign VC offices also eventually spun off talented VC partners into stand alone local firms and encouraged globally successful nationals to repatriate.

The effect was the development of a layer of global class venture capital partners and returns on investment that obliged institutional investors to open the flow of cash to the asset class. Ah-ha!

It is tough to message this kind strategy politically though. Who is going to lobby for and sing the praises for this kind of approach?

Cash starved entrepeneurs who are too busy trying to get their idea off the ground? The TD Bank who just got a juicey management contract as a reward for basically sitting on the venture capital sidelines for years? The local VC firms who are the only game in town? Hmm ... maybe this is a job for David Crow??

ONTARIO GOVERNMENT FUNDS U.S. VC FIRM TO COMPETE LOCALLY ... not a very catch Globe & Mail headline if you are the Premier but probably the best job creation strategy possible.

(wow ... that is my first "comment grows into post" experience ... catch it all again fresh and new at www.socialcapitalvalueadd.com)

Re: » Your Facebook app is a disaster, and I was right. | StartupNorth

Michael Cayley — Fri, 29 Feb 2008 17:07:44 -0000

Re: » $205M Ontario Venture Capital Fund | StartupNorth

Michael Cayley — Thu, 12 Jun 2008 21:07:52 -0000