Archive for September, 2009
A very valuable second grade lesson
September 24, 2009The Venture Capital Mix in Oregon
September 22, 2009Here are some good data regarding venture capital in Oregon. The study covers 2008, so it’s a bit dated at this point. It’s very interesting to see the mix of investment. As has been well discussed elsewhere, Oregon is not a digital media market. The relatively larger segments relate to semiconductors, energy, and biotech (62% of the total).
Software comprised 12% of the total. Media and entertainment were only 5%. Investments in these sectors are simply the exception versus the rule in Oregon. Oregon has a relatively light track record in these sectors (as compared to Silicon Valley and Seattle). Additionally, digital media companies require less and less capital and are able to cost effectively go after niche markets. Many digital media companies simply do not fit the traditional venture capital profile. (See a good discussion on this issue at the SiliconFlorist blog.)
Thus, no surprises as to where the investments are being made in Oregon.
[I would like to see how the mix has shifted, if at all, in 2009.]
Aside from the mix, in absolute terms, 29 companies raised a total of $174MM in venture capital in 2008.
Here is the chart. The full presentation can be found here. The data source is PriceWaterhouseCoopers, MoneyTree Report (March, 2009).
Renewable energy at Opal Creek
September 19, 2009Powers the whole place
Stick a (temporary) fork in this idea
September 11, 2009
I’ve been spending some time thinking about business ideas around local media in the Portland market. This is an area that I’m keenly interested in.
I would love to figure out a way to build a meaningful business around a network of hyper-local news sites (e.g., ThePortlander.com) and top Portland focused blogs (e.g., OurPDX.com). There is a lot of great work going on. Unfortunately, it’s difficult for me to figure out how to build a business around it. There just isn’t enough traffic.
Here is a simplified version of what I came up with. At this point, I think it’s a “pass.”
High level model assumptions:
- Top 20 Portland blogs and local news sites = 100,000 unique users. In reality, it’s probably less
- Each unique user generates 10 page views per month
- There are two ad positions on each page selling at an average rate of a $10 CPM
- 75% of the inventory is sold out
- Bloggers/journalists retain 70% of revenue
Based on these assumptions:
- Each of the 20 network participants would take home $525 per month
- The advertising network operator would generate $4,500 per month in gross revenue
I’ll will revisit these assumptions over time. For now, I’m sticking a fork in this idea.
By the way, the model looks very different in larger markets (e.g., NYC, LA, Chicago).
Thanks Rick Turoczy for your thoughts on this.
We have wind tubines on our buildings in Portland
September 10, 2009Ain’t it cool
Cupcakes: the next economic bubble
September 9, 2009Cupcakes are everywhere. I don’t get it.
