You’ve got a really great idea – you may even have a product and customers. Time to start a company. So you go up and down Sand Hill Road or Route 128 and knock on as many doors as you can. You get a couple of term sheets then the VC jerk you around a bit and change the terms and finally you take money to start the company. This process takes about six to 12 months. Expect to give away from 20% to 80% of the company. Frictionless social media is rendering that model obsolete and putting the power back to the entrepreneurs.
Look no further than Kickstarter. This week, after a scant twenty days on the site a new e-Paper watch looking to raise $100,000 has raised $10,000,000. Is this the lottery? No, not at all. That’s a lot of orders to fulfill, a lot of production to create, significant infrastructure to create. They have their work cut out for them. But they, like Twine and 3-D printing have found a real market need and used a frictionless form of social media – kickstarter to create tremendous value for the idea and invention – not just for having deep pockets.
Frictionless social media will allow brands and people everywhere to monetize the moment.