Are frenzied VC investing and jittery markets reason for concern?
Over the past two weeks, I’ve seen several signs that we may be on the precipice of another bubble burst. TechCrunch reported earlier in the week that VC investing has reached it’s highest level since 2001 - $979 million was invested in Q2 alone, 52% more than Q2 last year. It’s true that the public equity markets, specifically the IPO market hasn’t exploded in the same way that it did in 2000, but I think that’s partially because other exit strategies have become more attractive and less risky for both VCs and entrepreneurs. At the same time, housing market/mortgage jitters are beginning to be felt in areas of the country. The MSCI US REIT INDEX was down four straight days this week, and is now 22% off its February all-time high. The S&P was down 5% this week, which included the biggest single-day drop for DJIA in 6 months. The NASDAQ was down 4.6%. It seems like the whole world has been speculating for several years about when the housing market bubble will pop. As for the technology market, could this all mean that we’re nearing the end of Web2.0 and entering the purgatorial stage before Web3.0 blossoms? If so, it may be time time to put that business plan on hold and start retooling for the next wave. In either case, I think the sharper up and down trends that we may be experiencing are indicative of the maniacal outlook which we Americans have adopted. It reminds me of a book - American Mania - that I read a few years ago. The “get rich quick” scenario - which motivates me - makes the “get poor quick” outcome a possibility. I just came up with that now, but I think it’s something worth considering over the weekend:)
Vespa: The only way to travel
So after many hours spent analyzing, researching and patrolling craigslist over a two month period (what else is new in my world), I finally pulled the trigger on a 2007 Vespa LX150 last week. What a thrill. I can’t believe I waited this long to buy one. My biggest fear - driving over the Brooklyn Bridge - turned out to be the best part of my commute. Is there something to be learned here?…but let’s not digress. Scootering around the city is similar to biking, but with more power and authority. On a bike, you’re somewhat at the mercy of those around you. Traffic is moving faster than you and you’re just hoping for no sudden changes of direction. On a Vespa, you keep up with traffic, and are often ahead of it since you can typically slide your way to the front of the line at lights. I think this makes traveling by Vespa safer than by bicycle. Other advantages? It’s more of a thrill. Traveling at 20-40 mph with wind in your face is fun. Also, the Vespa seats two. This is an extra nice perk.
Vespa has launched a campaign called Vespanomics marketing the ecological benefits of owning and riding one. I don’t know if I can claim it’s more environmentally-friendly than the subway or bicycle, but it still makes me feel good that this is one of their selling points. As part of this campaign, they’re offering free parking at four different Manhattan parking lots. What a nice bonus! Of course, I’ll probably just find a nice spot on the sidewalk after this promotion ends like most other fellow Vespa owners. Then again, based on the way the Vespa section of the parking lot has looked the past week, the others won’t need to change anything.
Photo of the week - Starbucks faceplant
When I came out of the Subway this morning at 35th and 8th, I saw this guy through the window, sitting at the Starbucks counter, passed out, doing a faceplant in his yogurt parfait. I couldn’t resist snapping a photo. At least he’s eating healthfully….
Doritos plugging into world of user generated content
Doritos plopped themselves in the center of user generated mania recently with a campaign to name the next flavor of chips. There were several different flavors in circulation, but the one I picked up, code-named X-13D, had a char-broiled meaty flavor. The process of ID-ing the specific source consumed approximately 15-20 minutes and most of the bag of chips. In the end, my friends and I agreed it was the Whopper, in all its flame-broiled glory. For someone who is, for the most part, a vegetarian, this realization was mixed with some confusion and despair. Having read Fast Food Nation though, I remained confident that the flavor was manufactured from 100% inorganic chemicals. The truth be told, we wouldn’t have finished as much of the bag were it not for the challenge of ID-ing the flavor. I commend Doritos for this campaign though. They’ve designed a rich website, with lots of interactivity. In addition to selecting and naming the new flavor, they are empowering users to create the audio track for the video ad. As a product line, Doritos hasn’t done much since the revolutionary Cool Ranch flavor appeared in 1992. I take that back…Baked Doritos was a good idea, but they borrowed that one from Lays, and it didn’t seem to catch anyway. It seems Whopper didn’t make it to the final bracket of the Dorito challenge. The two finalists are wild white nacho and smokey cheddar BBQ. While I love BBQ, I’m pulling for wild white nacho in this match-up.
My turn to weigh in on the iPhone
Since just about every blogger with a pulse has voiced their opinion of the iPhone within the week, I feel like I’m in a blogosphere all my own to not have voiced mine, especially considering I’m on my way to the Cingular store to return it today. A week ago Friday, I received a frantic call from my dad who was camped out at the Cingular store in Easton, MD. He had just relieved a guy who he paid to wait in line since the store opened that morning. The line grew from 2 to 20 people before it opened and the store never sold out, though you can’t fault him since this seemed to be the prevailing pattern all around the country. Later that weekend, I unpacked and registered the sucker, not experiencing any of the problems that plagued many other purchasers. The device is very cool. The user interface is revolutionary. The keystrokes and multimedia functions are creative, original and unseen yet on a mobile device. So why am I returning it? I find the form factor and the typing process/keyboard problematic. Problem #1 - It’s taller than my blackberry so doesn’t fit in my pocket as well. Yes, it’s also thinner, but height seems to make a bigger difference when it’s in my back pocket. Problem #2 - I found it difficult to type and certainly far more time-consuming than the blackberry. Sending a quick sms message takes roughly twice as long. No good. It’s possible that my stubby fingers have something to do with it, but when I conducted an unscientific test made up of a random sample of friends, more than half also had trouble typing accurately. There’s been chatter on the wire about the next gen version having a feature that rotates the keyboard to landscape mode when the phone is held horizontally, similar to the photo functionality. This would be a huge improvement, but still not make is as easy as typing on a blackberry. Ultimately, the keyboard plays a prominent role in every function that requires typing - email, sms, calendar, web and notepad - so a sub-par keyboard is a big deal. I’ll wait and see what Apple has in store for the future, but for now, I’m content sticking with my old trusty RIM device.