Dave McClure was on a panel at MIT last night organized by Simeon Simeonov (FastIgnite) and the MIT Enterprise Forum.
Also on the panel were Hemant Taneja of General Catalyst and David Cohen of TechStars.
Now Dave McClure is obviously very bright and tremendously successful with his FoundersFund. And he was making some interesting points last night but I was getting a little concerned that Simeon or Hemant would have to beat Dave senseless with his microphone to get him to stop interrupting last night.
Most of what McClure said applies to Web 2.0 startups.
My big takeaway from the event and actually a confirmation of a theme that I’ve heard percolating through the Boston Web 2.0 startup scene for sometime now is that the “Business Plan as holy grail” approach to starting a venture, especially a web based venture, is dead. Very dead!!!
If you are a young geek in Boston thinking about a web based startup, concentrate on getting an alpha or beta version of your website up and running. Then apply to one of the seed accelerator programs e.g. TechStars Boston (Springtime), BetaSpring Providence (summer), TechStars Boulder (Summer), Ycombinator SF (Summer), on and on. Code your ass off and see whether your site gets any traction.
Don’t waste your time trying to raise funds from VC’s and Angels who want to see a 30 page business plan as the necessary prerequisite for a sit down. These “VC’s” simply don’t get the new paradigm for startups in the web based world.
And if the “Businees Plan” is dead for the web based startup world, the god forsaken “Business Plan Competitions” that you see at colleges throughtout New England are as useless as wings on a penguin.
