How everything on the web is quickly becoming useless...

Sometimes things move so fast, you don't even feel yourself spinning.. kind of like standing on the earth...or moving in a fast car.... you are moving - but you just don't feel it.

Well guess what - the Internet right now is moving faster than ever - and I am not sure its going the right direction (or atleast if it is - its leaving everything else behind).

People refer to the current web as "Web 2.0" - but I think that may have been a premature name - assuming you believe 2.0 has some reminense of 1.0. Sure we still have millions of 1.0 websites out there - but they are quickly becoming obsolete.

Nobody goes to websites anymore. We are not in Web 2.0 - we are in new dimension of the Web (lets call it WebOS - kind of catchy old name, for new Web).

So what does this mean? The Web is a platform for utilities (e.g. Applications). User behavior has changed.

BEFORE: Web Marketing = Lets launch a website. Register a cool domain.
NOW: Don't bother, noone will go there - and domains don't matter anymore.

BEFORE: Lets link to other websites, and get links back to our website
NOW: Nobody clicks on links anymore - the web is becoming homogeneus.

BEFORE: Hmmm, this banner ad looks interesting.
NOW: I hate any ad, and for spite I refuse to click.

BEFORE: Let's "surf" the web - click around and explore
NOW: I don't have time to surf or learn new sites - I know where to go to get what I need.

BEFORE: I want to Blog.
NOW: Noone is reading my Blog - I have no audience... I WANT TO POST!

BEFORE: Let me email my friends to see what is going on.
NOW: Why bother emailing, I'll just look at their Wall.

BEFORE: Let me search the web, and see how I can do that
NOW: There is an app for that.

As you can see my point is simple. User behavior has changed, and I am not sure its good for the web. The average number of websites a user hits per day is decreasing NOT increasing. The average user spends more time on a few sites (e.g. facebook), and doing less discovery.

This new phase of the Web, is less about the Internet (the magical tubes that connect us) and more about the Humans behind the device. And you don't need thousands of websites to connect humans. You only really need a few. (Is that good or bad?)

We are molding the Internet into a Human media, and building form factors and tools around specific functions (applications), and ignoring the old "websites". We don't realize it, but with every Tweet or Poke - we are killing a website. Our window to the web is shifting to mobile devices (which have never been web friendly). Take the Iphone. Do you use the IPhone to surf old websites? Probably not. You download an app, and run the app. Going to the browser becomes more of a hassle.

Why are websites dying? Its actually pretty logical if you think about it. A website isn't human. It doesn't talk. It's doesn't communicate. It doesn't show emotion. It's not real-time.

If you think about it - we should be surprised they lasted as long as they did.

Why Social Media is Local

It seems like every conversation I have with people (especially marketing folks) about Social Media - they always talk in terms of Global.... and I am not sure that is the right way to measure social media.

A popular tidbit everyone throws out is "Facebook has over 350M users!!!". Which I admit is impressive - but in reality its a similar stat to "There are 25,000 McDonalds in the world". Which is another impressive stat. But the reality is I have only been to maybe 10 different McDonalds in the last few years - and for the most part I go to one or two close by (e.g. locally).

I am sure everyone I know has eaten at McDonalds at least once or twice - and some people every week. Probably a lot like Facebook. Some of my friends update their status daily or even hourly, and some still have "RIP Michael" as their status.

So is McDonalds a Global Company? Sure, but we don't really think of it that way... we think of it as a local fast food restaurant. We know its everywhere - but we really only care about the one closest to where we live.

I think Social Media is more like McDonalds than we think.

Sure, we all have friends in other states (or even other countries) - but do we really see them that often or even comment on their wall a lot? Or do we really connect more with friends who live closeby or work with us on a daily basis?

What percentage of your Friends live nearby? Probably 80% at least? So doesn't that make Social Media LOCAL?

What events and pictures do you see come across your wall or news feed? Are they nearby? probably... so doesn't that make it LOCAL?

Social Media should be defined from the user perspective NOT by the perspective of the entire network (top down).

FACEBOOK is not 350 Million networked users, just as much as the world is not 5 Billion connected humans. Facebook is a network of 130 friends (see stats) (average number of friends a user has on Facebook). Facebook is not a network of millions of fans - most pages have less than 1,000 fans and are regional in focus.

So if you are looking to engage with Social Media, and looking to market your business - you need to not forget that social media marketing is more like local media marketing than you may think.

10 Ways we can improve Economic Development in Sarasota

I have been (somewhat) involved in the economic development efforts of our city - Sarasota, Florida. I love this town, and plan to live here a long time. However, our city (like most) lacks the economic diversity to sustain a healthy economy during tough times. Like most Florida towns, Sarasota has depended heavily on tourism and real estate.

When I first began writing this article I was going to complain and whine about how this city isn't doing the right things to help strengthen our economy - but instead I figured I should take a more positive road, and lay out ten things I would do:

1. FOCUS ON OUR ASSETS - I think sometimes we try to be what we really are not. We try to convince people we have a robust work force, or that we have an awesome tech infrastructure. We need to focus on what we have that is real, strong and what can attract a new economy. For example, Ringling Art School as one of the strongest schools in country around interactive design, animation, gaming, etc. Other assets we have is a vibrant Arts community, Mote Marine and our Film Festival. We need to leverage these assets to become nationally recognized as a destination for entrepreneurs.

2. FOCUS ON ENTREPRENEURS - Focus our Economic Development efforts on recruiting and retaining entrepreneurs. We waste time and money on trying to get "big companies" to relocate. We need to bring creative and tech professionals to our city, to build a new economy.

3. BUILD INCENTIVES - We need to have incentives to attract young, emerging companies to move here while they are able to decide where they want to grow their new company. We need to have money and programs that are aggressive in bringing them here. For example - Free Office Space - leveraging programs like the HuB Incubator is doing, or expanding on this concept into a Tech/Creative Park - where companies can apply and qualify for free rent for 2-3 years.

4. HIRE A LIASON - We need someone who is dynamic and energetic and knows how to get entrepreneurs excited about Sarasota. We need someone to visit Venture Capitalists, and other cities and incubators/colleges around the State. Constantly trying to get new startups, emerging growth companies to move here.

5. GET SERIOUS ABOUT TECH - A City needs to walk the walk... and we are not leading the way on being a "green/tech city". We need to invest in more tech infrastructure, broadband downtown. We need to show the world, that Sarasota can be innovative as a city.

6. BUILD A YOUNGER CULTURE - In order to retain and attract young professionals we need to build a younger culture in Sarasota. Projects like the VINYL FESTIVAL launched by the HuB do exactly this - it reaches out to the entrepreneur, artist, young professional and shows them this city acknowledges them, and has created a social side to our lifestyle.

7. BUILD PARTNERSHIPS - Start leveraging Assets in our city and build strong partnerships with other organizations along the I-4 corridor and around the State. Build relationships with UCF, UF and Disney. Extend research and development from these colleges and others into Sarasota. For example, create programs between - UF and MOTE or RINGLING and DISNEY... setup commercialization offices, and take IP to Products - create companies.

8. BRIDGE TECH AND TOURISM - Leverage our huge influx of tourists, and bombard them with tech/creative influence. Make them believe Sarasota is a tech-city and then they spread the word, or perhaps make a decision to move here. Make them want to start their next venture here - and not just vacation here.

9. EMBRACE SOCIAL MEDIA/NETWORKING - Expand on programs like EnergizeMyBiz.com which is a social network for Sarasota. Give all professionals the tools and ability to become more connected. Leverage online tools to enhance the local school system, government and other organizations to make the city more engaged, connected and efficient.

10. LAUNCH A GLOBAL MARKETING / PR CAMPAIGN - Take some money out of budget and launch an aggressive campaign to attract entrepreneurs and creative professionals to the area. Focus on areas where there is high entrepreneurial activity, and make it known to them that Sarasota wants to be their next home.

Hope someone is listening :)

A New Incubator

Some of you may know we had an incubator a few years ago, and unfortunately despite its success we had to let go of the space for a local school.... but now we are back again picking up where we left off... launching a new Incubator.

We chose the same location (Rosemary District just north of Downtown Sarasota) because we believe it is a perfect place to build a tech/creative cluster. The building is bigger than before, and we have bigger plans for the space.

Most people define an Incubator as a place you provide office space to startups, and maybe give some advice here and there. This is not our model.

Sure, we want to help entrepreneurs and yes, startups will work out of the space - but this is really not the mission of our incubator.

Our mission is to change the landscape and perception of our city on multiple levels - social, economic and political.

Video Distribution - a New Market

I have been involved in a company (ThisWeekInc.com) for a while, and I believe there is a lot of potential in creating and distributing content on the web - specifically video. We have decided to focus on the local market and getting info out to tourists (afar and visiting).

Here is a sample of what we have done:

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The Florida Opportunity Fund as I see it....

Okay... I finally was able to get the info on the Florida Opportunity Fund. (This is the 30M dollars given by the State to help fill the funding gap for startups to VC's, and also attract more capital to the State by investing with VC funds, Angel funds (inside and outside the State).

I am not sure what the best use of the funds would be - but let me start by saying 30M is a tough number to work with. Its not enough to really attract big V.C.s who manage 250M+ funds and its not enough to really spark new angel funds... (e.g. make some good people get off the couch and start raising money with the potential to get matching funds).

So where will this money go? It seems like most of it will go to V.C.s who really don't make investments in Florida - but now "suddenly" see the opportunity because they can take some of the State's money. Maybe some of it will go to local funds - but who? There is only one true VC Fund in Florida (Inflexion) and only 3 organized Angel funds (Startup Florida, Emergent and Springboard). Of course there may be more out there - but I haven't run across them, and certainly haven't seen them actively sharing deals.... but who knows?

Even if there are other Angel funds, I don't expect a lot of the 30M going to them, because the fund can only invest up to 50% of the total fund. So I would estimate (maybe) 3M will go to Angel funds (each fund getting 250k-500k?).

So does this solve the problem of Florida? No.

Will this help startups and early-stage companies get funded? No.

Will this make out-of-state VCs look at Florida? Sure. Only because they have to. But they will claim there are no "mature deals" and sit on the money.

So what will this Florida Opportunity Fund do? It will go to VC's (mostly out of state) who will sit on the money - wait for deals that meet their criteria - and find their are none.... because (surprise) we lack the angel capital to bridge (see cartoon above) these deals to be VC ready.

Think about it....here are the scenerios

1. Scenerio A: I am a managing partner of a 200M fund in Boston. I get 1.5M from Florida to look at Florida deals. Do you think I am going to really care about Florida? Maybe I open a 200 sq.ft office in Orlando, and have a MBA student look at Plans, and every once in a while, hear a pitch....

2. Scenerio B: I am an Angel Fund in Florida, and I raise 1-2M amongst angels, and I get 300k from the Florida Opportunity Fund. Whooopee! Where am I going to invest all this new money?

3. Scenerio C: I am a VC Fund in Florida and get 2M from the Florida Opportunity Fund - GREAT!!! but how do I raise the rest of the money to close my next fund? Who the hell in this environment is going to invest in a VC fund in Florida?

(excuse my rant)

Maybe I am not seeing the big picture.... but I think I have "some" experience in funding companies, growing startups and building businesses in the State of Florida. So I only can offer my opinion.

(If anyone cares.... here is what I would do with the 30M)

1. I would fund all Angel Funds associated with Universities (e.g. Emergent). I would invest 1-2M into each Angel Fund, with a requirement they invest 100% in Florida Companies. I would formalize a link between the Tech Licensing offices to these funds, and close the gap between Research (in Universities) and Commercialization. This would be around 10M of the 30M (if we did 5 major universities)

2. I would pick 2 to 3 Major Venture Funds and invest 5M into each one but require them to open and staff an office in Florida. I would require them to have a Managing Partner in Florida full-time. I would require them to invest 10% of this money annually at a minimum. If these funds are big funds, they will draw other smaller funds to move to Florida. They would also be able to lead big rounds of investment and draw from other out-of-state funds, and give other funds a high comfort level to invest in Florida if the "big" fund has smart people here watching the deal. You don't need 10 big funds in Florida... you just need a few to start to show a presence. (BTW, this is not unlike what the past Governor did with Scripts)

This would cost 10 to 15M (5M in each fund)

3. With the rest of the money - I would create a Micro-Loan that issues loans to startups / emerging companies that need up to 50k and don't need 1M-2M to launch. This would be secured by assets/stocks/personal guarantees - but be more flexible than traditional SBA loans. I would use the Angel Funds and VC funds as channels to refer deals for the micro-loan program... This way if an entrepreneur needs 20k to buy equipment, they can get started, and potentially later raise money from the Angel funds (100k-250k) or from VCs (1M+).

I believe this approach solves a bigger problem in Florida which is 1) There is no gap funding 2) There is no name brand VCs to validate the State and 3) There is no seed funding.

(sigh)

I said my piece. I will go back to my garage.... and work on the next startup.

Why isn't the Florida Venture Forum online to watch?

I guess it's probably my fault - but I missed the Florida Venture Forum again this year. Primarily because most presenters are later stage companies, it doesn't really match my investment criteria - however - I should have gone.

If you did go, I would like to get your feedback on how it went (leave a comment) - I wish they would webcast the presentations - what a great way to get more exposure, and let lazy bums like me see the presentations....