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Does Web 2.0 need VCs? - MasterMaq.ca Blog
I got to this session slightly late, but that's okay. Jason Fried and Rick Segal are tackling the question of whether or not Web 2.0 companies need venture capital. Jason is, of course, from 37signals, a Web 2.0 company that didn't take VC. Here are my notes (my comments in italics): Jason says everything they do is profitable. Rick agrees with Jason, if you don't need the venture capital, don't take it. Institutional money changes the dynamics of what you're doing. On the whole, Rick thinks that 37signals is an anomoly. The norm is folks come up with an idea, and then need some cash to get going. If you don't lose your limited partners' money, they will love you. There's a myth that you need to make millions and millions, and its probably not true. Jason says the answer to "how do you monetize this" is "you charge for it." If you build tools that people want and like, you can charge for them. If you pay for something and you use it, you'll see the value. There is a disconnect between