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    <title>VCinJerusalem</title>
    
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    <id>tag:typepad.com,2003:weblog-528184</id>
    <updated>2009-06-08T11:34:16+03:00</updated>
    <subtitle>My life in the center of the world -- musings on my family, community (local, global, physical and virtual), people and more. Oh and of course, a few words on tech related start-ups, within the context of living in the ulimate start-up with humble goal of repairing the world. Venture backed by over 3,000 years of history, thought, culture, and angst. 
By Jacob Ner-David</subtitle>
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        <title>19 Comments And Counting: the "power" of Facebook</title>
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        <id>tag:typepad.com,2003:post-67817601</id>
        <published>2009-06-08T11:34:16+03:00</published>
        <updated>2009-06-08T11:34:16+03:00</updated>
        <summary>I have writing a blog now for almost 2 years. From time to time get comments, sometimes an email (or even an old fashioned phone call, usually from Elie Wurtman) complimenting me on a blog posting. The feedback is nice,...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Elie Wurtman" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Facebook" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="twitter" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Valuation" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Web/Tech" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Weblogs" />
        
        
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<div xmlns="http://www.w3.org/1999/xhtml"><p>I have writing a blog now for almost 2 years. From time to time get
comments, sometimes an email (or even an old fashioned phone call,
usually from <a href="http://www.benchmark.com/about/israel/general_partners/wurtman.shtml">Elie Wurtman</a>)
complimenting me on a blog posting. The feedback is nice, reminds me
that I am not only writing for myself (which I am) but also for others.
</p><p>
While I am not the world's greatest fan of Facebook, or its bloated
valuation, it definitely has created a public commons, a place where
people feel free to express their opinions. Perhaps, like Wikipedia, it
should be turned into a massive non-profit. Throw a search box in
there, share the ad revenues with Google et al, will definitely be
enough to cover costs of operation (like the Mozilla browser). </p><p>
What prompts my thoughts on this? Well, was on a super boring
conference call a few days ago, and was fiddling around with Facebook
and decided to write something in the "status" box. I wrote that I was
waiting for President Obama's speech to start, and that I hoped he
would "say the right thing." That launched a debate (on my rather vague
status update) which currently has more than 19 comments. More than any
blog posting I have written, and the comments are well thought out,
whole paragraphs, not just a few words here and there. </p><p>
Incredible. As always, proves that people have way too much free time,
but also that a simple to use interface, which will guarantee
"exposure" will be enough for many to write and write. And it is
somewhat unmoderated. As long as you are a "friend" of mine you could
comment to anything I throw up on my facebook page. and yet for the
most part the self moderation works...not too much abuse, language is
kept in check, little outright digital vandalism. </p><p>
Facebook has developed as a powerful medium, and I am not sure if it is
yet at the peak of its power (we will have to see how its kissing
cousin, Twitter, develops), but it certainly is no closer to developing
a real business than a year ago. And perhaps that's OK, if Marc
Zuckerberg gives up on dreams of billions of dollars, and instead
decides to donate facebook to the people. He is young, I am sure he
will figure something else out to make sure he gets his riches. And/or
he could donate it with the caveat that he gets a $X million a year
salary for 10 years, enough to feel that he has real money, but far
short of Sergei like riches. </p><p>
If any of you know Marc, pass this thought on to him. From an ego point
of view, he did it. Now he needs to decide where to go from here.
Meanwhile I am thinking up my next creative status update....</p></div>
</content>


    </entry>
    <entry>
        <title>Packing Up "Stuff"</title>
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        <id>tag:typepad.com,2003:post-67274007</id>
        <published>2009-05-26T15:22:23+03:00</published>
        <updated>2009-05-26T15:22:23+03:00</updated>
        <summary>In part of my professional life I spend a lot time talking about, and dealing with, virtual stuff. Web sites, avatars, twitter feeds, blogs, etc., lots of virtual/digital stuff. In my "real" life I am overwhelmed just now by physical...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Current Affairs" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="family" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Place/Time Shifting" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Science" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Zionism" />
        
        
<content type="html" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
&lt;div xmlns="http://www.w3.org/1999/xhtml"&gt;In part of my professional life I spend a lot time talking about, and dealing with, virtual stuff. Web sites, avatars, twitter feeds, blogs, etc., lots of virtual/digital stuff. &lt;br&gt;&lt;br&gt;In my "real" life I am overwhelmed just now by physical stuff. The real kind. &lt;br&gt;&lt;br&gt;Right now in the process of packing up our "stuff," in advance of our move to the Galil (don't mean to shock loyal readers of this blog, which obviously has Jerusalem in the title...more on this subject in posting to come!). &lt;br&gt;&lt;br&gt;Only a little bit into the process, and already can't believe how much stuff we actually have. Do we "need" all this stuff? Does it make any sense (environmental, social, physical) for us to keep so much stuff for ourselves? I don't think. Where should the line be in terms of stuff? Not sure. But giving thought to it. &lt;br&gt;&lt;br&gt;In the meantime, enjoyed these two views on the subject of stuff, the first by the legendary George Carlin (of blessed memory) and the second by &lt;a href="http://www.storyofstuff.com"&gt;Annie Leonard&lt;/a&gt;. &lt;br&gt;&lt;br&gt;&amp;nbsp;&lt;br&gt;

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    </entry>
    <entry>
        <title>Fred, You got it right. Things will pick up again. Question is when...</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/05/fred-you-got-it-right-things-will-pick-up-again-question-is-when.html" />
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        <id>tag:typepad.com,2003:post-66434985</id>
        <published>2009-05-06T16:37:00+03:00</published>
        <updated>2009-05-06T16:37:00+03:00</updated>
        <summary>Fred Wilson gets it head on in his posting (see below) on the coming revival of the IPO market for "venture backed companies," which for me is a euphemism for young companies starting to show promise but not controlled by...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Current Affairs" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Place/Time Shifting" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Religion" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Valuation" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Fund Process" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
<div xmlns="http://www.w3.org/1999/xhtml"><p><a href="http://www.avc.com">Fred Wilson</a> gets it head on in his posting (see below) on the coming revival of the IPO market for "venture backed companies," which for me is a euphemism for young companies starting to show promise but not controlled by a single investor (who could simply live off profits/dividends).  The exit path for investors, option holders, etc. has traditionally been IPO, and M&amp;A (if acquired for cash or by a public company with liquid shares). </p><p>I completely agree with Fred's analysis, but like many messianic prophecies, the question is not if, but when. On behalf of all of us in the start-up sector, may it be soon!</p><h1>The End Of The IPO Drought Is Coming</h1><div class="byline">
<a href="http://www.businessinsider.com/fred-wilson">Fred Wilson</a><span class="pipe">|</span><span class="date">May. 5, 2009, 8:01 AM</span><span class="pipe">|</span><a href="http://www.businessinsider.com/the-end-of-the-ipo-drought-is-coming-2009-5#comments"><img alt="comment" class="icon-left " height="12" src="http://static.10gen.com/businessinsider.com/assets/images/icons/icon_comment_12x12.gif?ctxt=www2009-05-04-02-61c4c70b2a4cfb7acae46b047449f8a5a9c072e0&amp;lm=1234385166000" width="12" /></a><a href="http://www.businessinsider.com/the-end-of-the-ipo-drought-is-coming-2009-5#comments">3</a></div><div class="icon-print"><a href="javascript:window.print()">Print</a></div><div class="tags">
 Tags: 
   <a href="http://www.businessinsider.com/online">Online</a>,
   
   <a href="http://www.businessinsider.com/big-tech">Big Tech</a>
   </div>
<p><img border="0" class="float_right " src="http://static.10gen.com/businessinsider.com/%7E%7E/f?id=4a002de84b543713000719f2" /></p>
<p>I've said it a few times on this blog recently as offhand comments,
but I feel compelled to say it a bit more loudly. I think we will see
the end of the IPO drought for venture backed companies within the next
year, possibly by the end of this year. I don't know if this market
rally we've been having is a headfake or the end of the bear market. My
gut says we'll see at least one more pronounced down move before we see
bottom.</p>
<p>But either way, at some point investors are going to want to own
stocks again, and when they do, I think the old fashioned VC-backed IPO
will have quite a bit of appeal. Here's five reasons I think this is
going to happen:</p>
<p>1) VCs have been in the penalty box for almost a decade since we
committed the cardinal sin of foisting crap into the public markets.
Somehow the investment bankers who helped us do it got out a lot
earlier than we did. But we've done our time and others have replaced
VCs as enemy number one of public market investors.</p>
<p>2) There are a lot of really solid companies sitting in venture portfolios waiting for the right moment to go public. <a href="http://fiveyearstoolate.wordpress.com/2008/09/29/oy-vey-says-stuarts-mother/">Stuart Ellman of RRE wrote last fall that<img class="snap_preview_icon " id="snap_com_shot_link_icon" src="http://i.ixnp.com/images/v3.79/t.gif" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal; font-family: &quot;trebuchet ms&quot;,arial,helvetica,sans-serif; float: none; position: static; left: auto; top: auto; line-height: normal; background-image: url(http://i.ixnp.com/images/v3.79/theme/silver/palette.gif); background-color: transparent; visibility: visible; width: 14px; height: 12px; background-position: -1128px 0pt; background-repeat: no-repeat; text-decoration: none; vertical-align: top; display: inline;" /></a>:</p>
<p class="blockquote" style="margin-left: 40px;"><em><a href="http://www.rre.com/">RRE<img class="snap_preview_icon " id="snap_com_shot_link_icon" src="http://i.ixnp.com/images/v3.79/t.gif" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal; font-family: &quot;trebuchet ms&quot;,arial,helvetica,sans-serif; float: none; position: static; left: auto; top: auto; line-height: normal; background-image: url(http://i.ixnp.com/images/v3.79/theme/silver/palette.gif); background-color: transparent; visibility: visible; width: 14px; height: 12px; background-position: -1128px 0pt; background-repeat: no-repeat; text-decoration: none; vertical-align: top; display: inline;" /></a>
has a number of companies that had zero revenues when we invested and
which are now doing $100 million or more in revenues and growing very
quickly.  These companies have achieved what they needed to achieve,
become market leaders, yet they cannot go public or exit under the
assumptions that employees or founders assumed when they began.</em></p>
<div class="blockquote" style="margin-left: 40px;"><em>So what do you do?  Sit tight, be patient, and continue to grow the company. <br /></em></div>
<p><br />3) Many of these companies are subscription-based or annuity
type business models that make for great public companies. Sarah Lacy
touched on this on <a href="http://www.techcrunch.com/2009/05/03/how-opentable-could-actually-matter/">her post about Open Table's IPO<img class="snap_preview_icon " id="snap_com_shot_link_icon" src="http://i.ixnp.com/images/v3.79/t.gif" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal; font-family: &quot;trebuchet ms&quot;,arial,helvetica,sans-serif; float: none; position: static; left: auto; top: auto; line-height: normal; background-image: url(http://i.ixnp.com/images/v3.79/theme/silver/palette.gif); background-color: transparent; visibility: visible; width: 14px; height: 12px; background-position: -1128px 0pt; background-repeat: no-repeat; text-decoration: none; vertical-align: top; display: inline;" /></a>:</p>
<div class="blockquote" style="margin-left: 40px;"><em>OpenTable is
hardly an Internet homerun. It’s frequently described as a consumer
Internet company, when really it’s a software-as-a-service company. The
good news –for this moment in time—is that that means Open Table
doesn’t have an ad model. It actually has paying customers in the form
of restaurants using its reservation software and paying it monthly
subscription fees.<br /></em></div>
<p>4) When investors decide they want to own stocks again, they are
going to look for simple businesses, products they can understand,
balance sheets with cash and not much else, and growth without
leverage. Guess what? That's what the venture capital industry produces.</p>
<p>5) Sarbox is now well understood by the accounting industry and by
the finance teams inside of our companies. There are providers of
Sarbox compliance tools and services that have now brought the cost of
Sarbox compliance down to reasonable levels. I'm not saying that Sarbox
is good or that it doesn't need to be reworked (it does), but it's a
devil we know at this point and it will not impede the IPO boom when it
comes.</p>
<p>Last week the NVCA put out <a href="http://www.magnetmail.net/actions/email_web_version.cfm?recipient_id=48784417&amp;message_id=720274&amp;user_id=NVCA">a four point plan to "restore liquidity in the venture capital industry"<img class="snap_preview_icon " id="snap_com_shot_link_icon" src="http://i.ixnp.com/images/v3.79/t.gif" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal; font-family: &quot;trebuchet ms&quot;,arial,helvetica,sans-serif; float: none; position: static; left: auto; top: auto; line-height: normal; background-image: url(http://i.ixnp.com/images/v3.79/theme/silver/palette.gif); background-color: transparent; visibility: visible; width: 14px; height: 12px; background-position: -1128px 0pt; background-repeat: no-repeat; text-decoration: none; vertical-align: top; display: inline;" /></a>
at its annual meeting last week in Boston. It involves getting more
investment banks engaged in taking our companies public, spurring the
development of secondary market exchages and related pre-IPO liquidity
activities, continued lobbying for lower taxes on VCs and
entrepreneurs, and reform of Sarbox.</p>
<p>Regular readers know that I am a huge fan of the secondary market
idea and I welcome the NVCA's attention and energy on that issue. On
the other three, I think they are wasting their time. It's like the
government suing Microsoft while Linux was growing in popularity right
under their noses. I believe the market will take care of this problem
as soon as we get a market that wants to purchase equities.</p>
<p>And my gut says that time will come sooner than most think.</p>
<p><img alt="Fred-Wilson.jpg" border="0" class="float_left " height="260" src="http://static.10gen.com/businessinsider.com/%7E%7E/f?id=4991bec830b7d9d200e574cc" title="Fred-Wilson.jpg" width="195" /><em>Fred Wilson is a partner at Union Square Ventures. He writes the influential <a href="http://www.avc.com/">A VC<img border="0" class="snap_preview_icon " src="http://i.ixnp.com/images/v3.43.0.1/t.gif?ctxt=wwwr1.1.5.3&amp;ctxt=wwwr1.1.5.3&amp;ctxt=wwwr1.1.5.3&amp;ctxt=wwwr1.1.5.3" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal;" /><img border="0" class="snap_preview_icon " src="http://i.ixnp.com/images/v3.44/t.gif?ctxt=wwwr1.1.5.3" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal;" /><img border="0" class="snap_preview_icon " src="http://i.ixnp.com/images/v3.60.1/t.gif?ctxt=www2009-05-04-02-61c4c70b2a4cfb7acae46b047449f8a5a9c072e0" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal; font-family: &quot;trebuchet ms&quot;,arial,helvetica,sans-serif; float: none; position: static; left: auto; top: auto; line-height: normal; background-image: url(http://i.ixnp.com/images/v3.60.1/theme/silver/palette.gif); background-color: transparent; visibility: visible; width: 14px; height: 12px; background-position: -1128px 0pt; background-repeat: no-repeat; text-decoration: none; vertical-align: top; display: inline;" /><img class="snap_preview_icon " id="snap_com_shot_link_icon" src="http://i.ixnp.com/images/v3.79/t.gif" style="border: 0pt none ; margin: 0pt ! important; padding: 1px 0pt 0pt; max-height: 2000px; max-width: 2000px; min-width: 0px; min-height: 0px; font-style: normal; font-weight: normal; font-family: &quot;trebuchet ms&quot;,arial,helvetica,sans-serif; float: none; position: static; left: auto; top: auto; line-height: normal; background-image: url(http://i.ixnp.com/images/v3.79/theme/silver/palette.gif); background-color: transparent; visibility: visible; width: 14px; height: 12px; background-position: -1128px 0pt; background-repeat: no-repeat; text-decoration: none; vertical-align: top; display: inline;" /></a>, where this post was originally published.</em></p><br /></div>
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    </entry>
    <entry>
        <title>Living History in the Moment</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/04/living-history-in-the-moment.html" />
        <link rel="replies" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/04/living-history-in-the-moment.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-65804435</id>
        <published>2009-04-21T16:57:31+03:00</published>
        <updated>2009-04-21T16:57:31+03:00</updated>
        <summary>Reading through reports of Ahmadinejad's appearance at the UN sponsored event in Geneva yesterday, and of course reflecting on Yom Hashoa and it's juxtaposition to Pesach, I thought back to another "world leader" who attempted to us the UN to...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Current Affairs" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Elie Wurtman" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Religion" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Zionism" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>Reading through reports of Ahmadinejad's appearance at the UN sponsored event in Geneva yesterday, and of course reflecting on Yom Hashoa and it's juxtaposition to Pesach, I thought back to another "world leader" who attempted to us the UN to whitewash his true face. </p><p>I am talking about Kurt Waldheim, an unrepentant Nazi who managed to shield himself so well that he rose to the position of UN Secretary General and President of Austria before concerned members of the human race began to unmask him (I had the honor of being one of those concerned humans). </p><p>On Pesach we are told to relive history, not to talk about about as something that happened long ago to some people with whom we have a tenuous historical connection, but rather as if we ourselves were just liberated from slavery. As if we ourselves were just experiencing freedom for the first time. I like to call this "Living History in the Moment." </p><p>When I first learned about Kurt Waldheim's past, and then watched as did all he could to distort history and make a mockery of the fight for freedom, I decided I needed to live history in the moment, and together with Elie Wurtman, Rabbi Avi Weiss, and many others, spoke truth to power, raised a voice of moral conscience. And we were heard. </p><p>I am not happy with myself that I did not do more to protest Ahmadinejad's participation in the UN meeting yesterday. At least Waldheim tried to evade his past...Ahmadinejad is proud of it, and continues to sow hatred and evil around the globe, both directly and indirectly. Shame on the UN for allowing him to disgrace their podium. And shame on us for being too silent. </p><p>Pesach makes us relive the taste of freedom -- but with freedom comes responsibility. </p><p>See this NYTimes story from 1990. Scary that this was 19 years ago. We have learned so little. Oh, by the way, Davidson=Ner-David (read to the end of the story....)</p><div class="columnGroup first">				
			<h1 class="articleHeadline">Evolution in Europe;  2 HEADS OF STATE CALL ON WALDHEIM</h1>
	<h6 class="byline">By HENRY KAMM, Special to The New York Times</h6>
	<h6 class="dateline">Published: Friday, July 27, 1990</h6>
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						<p>Presidents Vaclav Havel of
Czechoslovakia and Richard von Weizsacker of West Germany met with
President Kurt Waldheim of Austria today, further eroding efforts over
the last four years to isolate Mr. Waldheim diplomatically because of
his war record.</p>
			<p>Mr. Havel, a longtime human-rights
campaigner, has been widely criticized for accepting an invitation to
open the Salzburg Festival. But he made his address a pointed lecture
to those who ''rewrite their own history'' and ''fear facing their own
past.''</p>
			<p>Public Contact Minimized</p>
			<p>The two visitors
minimized their public contact with Mr. Waldheim, who is suspected of
having been aware of war crimes committed by his German unit when he
was a lieutenant in occupied Greece and Yugoslavia. He also has been
accused of having covered up that part of his biography during his rise
to high office. Mr. Waldheim served two terms as Secretary General of
the United Nations, and it was only during his campaign for the
Austrian presidency in 1986 that public allegations about his record
surfaced.</p>
			<p>In a television interview tonight, Mr. Waldheim
said he saw no link between Mr. Havel's statements and his own history.
He said he had not rewritten his biography or denied anything from his
past, and that ''international commissions'' had ruled that he shared
in no guilt for war crimes.</p>
			<p>Until today, the only European
head of state to have seen President Waldheim in Austria was President
George Vassiliou of Cyprus. But in this same period Mr. Waldheim was
visited by Pope John Paul II; Giulio Andreotti, Italy's Foreign
Minister; Eduard A. Shevardnadze, the Soviet Foreign Minister, and
Crown Prince Raja Vajiralongkorn of Thailand.</p>
			<p>On his travels
in this period, mostly to Islamic countries, Mr. Waldheim has met with
King Hussein of Jordan and President Kenan Evren of Turkey.</p>
			<p>In
an interview published in Vienna on the eve of his visit, Mr. Havel
questioned the moral value of Western leaders' avoidance of contacts
with Mr. Waldheim.</p>
			<p>''I don't want to say that this posture
didn't originally have an ethical basis,'' Mr. Havel said in the
interview with the daily Salzburger Nachrichten. ''Of course it did,
but by turning it into a ritual it becomes void and loses its original
moral content and become a cliche.''</p>
			<p>In comments reported by
the Czechoslovak press agency, Mr. Havel said his decision to attend
the festival was a ''expression of respect for the Salzburg festival
and especially the Austrian nation.''</p>
			<p>Mr. Havel was
criticized for coming here even by Charter 77, the human-rights
organization that he helped to found and that became the core of the
dissident movement under his country's Communist former leadership. His
visit was also questioned in a front-page open letter by Lidove Noviny,
a daily that is close to the Czechoslovak President. #3 Are Guests at
Lunch The crush of photographers and reporters around Mr. Waldheim as
he awaited the joint arrival of the visiting Presidents in the Festival
Theatre lobby this morning was so great that it apparently prevented
his greeting them formally in public.</p>
			<p>But the three spoke
briefly after Mr. Havel's address and were guests at a lunch given by
the province's Governor in a hotel a few yards down the narrow street
from the house where Mozart was born.</p>
			<p>Lunching with Mr.
Havel could not have been easy for the 71-year-old Mr. Waldheim. The
literary indirection of Mr. Havel's speech could hardly disguise to
whom it was addressed.</p>
			<p>Making existential fear of history in
Central Europe his theme, Mr. Havel, who is 53, said he had felt such
anxiety himself. He spoke of his ''hangover'' in recent days, when the
''poetry'' of the events that made him President gave way to everyday
''prose'' after his election last month by the first freely chosen
Parliament in four decades.</p>
			<p>''Fear of history in these parts
is not only fear of the future but also fear of the past,'' Mr. Havel
said. ''He who fears what is to come usually also fears facing what has
already been. And he who fears facing his own past must necessarily
fear what lies before him.''</p>
					<p>''Too often in this corner of
the world, fear of one lie leads only to another lie, in the vain hope
that it will cover up not only the first but also the very practice of
lying,'' he continued. ''But lying can never save us from the lie.
Falsifiers of history do not safeguard freedom but imperil it.</p>
			<p>''The
assumption that one can with impunity navigate through history and
rewrite one's own biography belongs to the traditional Central European
delusions.</p>
			<p>''If some one tries to do this, he harms himself
and his fellow citizens. For there is no full freedom there where
freedom is not given to the full truth. In this or other ways, many
here have made themselves guilty. Yet we cannot be forgiven, and in our
souls peace cannot reign, as long as we do not at least admit our
guilt. Confession liberates.''</p>
			<p>''I have many reasons for the
statement that the truth liberates man from fear,'' Mr. Havel said. He
said that dissidents in Eastern Europe retained their human qualities
only by speaking the truth without fear. ''Otherwise they would
probably have succumbed to their despair,'' said the man who served
more than four years in prison for speaking his mind.</p>
			<p>Mr.
Havel concluded: ''Let us try then to free this sorely tested region
not only from its fear of the lie but also of its fear of the truth.
Let us at last look sincerely, calmly and attentively into our own
faces, into our past, present and future. We will reach beyond its
ambiguity only when we understand it.''</p>
			<p>Visits Are Labeled Private</p>
			<p>The
presidential visits were labeled private and devoted to the festival,
and no national flags bedecked the town, which was bathed in sunshine.
Mr. Havel and Mr. Weizsacker, left for home after lunch, the German by
helicopter and the Czechoslovak by car.</p>
			<p>Mr. Waldheim arrived
at the restaurant in his own car, followed minutes later by the two
visitors traveling together. In the discussion before lunch, Mr. Havel
invited Mr. Waldheim and the Austrian Chancellor, Franz Vranitzky, to
send experts to take part in Czechoslovak studies on the safety of a
planned nuclear-power plant near the Austrian border that is opposed by
Austrian environmentalists.</p>
			<p>Mr. Havel explained in his
speech that he had accepted the invitation about a year ago in the
belief that, as usual, he would not be allowed to travel and would
smuggle out his essay to be read by another. Before his first election
as President last December, he had not left Czechoslovakia since 1968.</p>
			<p>Privately,
Czechoslovak officials said earlier in Prague that the President would
have avoided the visit had he been invited immediately after the
revolution that catapulted him from dissidence to the presidency. He
was reported to have sweetened the pill by obtaining Mr. Weizsacker's
agreement to accompany him.</p>
			<p>The German President, who is 70,
had won wide acclaim for a speech in 1985 accepting German
responsibility for the crimes of Nazis and had been the first foreign
leader whom Mr. Havel invited to Prague after becoming President. Mr.
Weizsacker's father, a German diplomat, was convicted of war crimes at
the Nuremberg trials, and served two years of a seven-year sentence.</p>
			<p>Mr.
Weizsacker and Mr. Havel arrived from Germany in a West German Border
Police helicopter. Even Czechoslovaks who opposed the visit do not
suspect Mr. Havel of having kept the engagement with the Salzburg
Festival to ingratiate himself or his nation with their neighbor. His
address was clearly not designed to make the Austrian President his
friend.</p>
			<p>'I Like to Keep Promises'</p>
			<p>''I accepted, and I like to keep my promises,'' Mr. Havel said to an Austrian television interviewer.</p>
			<p>The
only disorder was provoked by two militant American Jews in the theater
lobby before Mr. Havel's address, who shouted at Mr. Waldheim, accusing
him of mass murder. Austrian reporters identified them as Rabbi Avi
Weiss of the Hebrew Institute of Riverdale, the Bronx, and Jacob
Davidson. They were taken into custody, a police spokesman said, and
released about 90 minutes later on bail of an undisclosed amount. last
subhed can bite</p>
			<p>Photo: Presidents Vaclav Havel of
Czechoslovakia, right, and Richard von Weizsacker of West Germany,
center, met yesterday in Salzburg with President Kurt Waldheim despite
a tacit boycott of Austria by other leaders. (Agence France-Presse)</p>
	</div>	</div>
			
					
		
		
		
		  				<div class="element1">
					<h6 class="metaFootnote">A version of this article appeared in print on Friday, July 27, 1990, on section A page 1 of the New York edition.</h6>
				</div><br /></div>
</content>


    </entry>
    <entry>
        <title>If A Man is Killed in Jerusalem, Do We Care?</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/04/if-a-man-is-killed-in-jerusalem-do-we-care.html" />
        <link rel="replies" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/04/if-a-man-is-killed-in-jerusalem-do-we-care.html" thr:count="1" thr:updated="2009-04-09T20:09:09+03:00" />
        <id>tag:typepad.com,2003:post-65216345</id>
        <published>2009-04-08T15:00:06+03:00</published>
        <updated>2009-04-08T15:00:06+03:00</updated>
        <summary>As usual, the Israeli government and security apparatus, in their infinite wisdom, chose the day before Pesach to finally carry out the destruction order on the house of one of the "tractor" terrorists in the village of Tzur Bacher, just...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Current Affairs" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Jerusalem" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Religion" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Zionism" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>As usual, the Israeli government and security apparatus, in their infinite wisdom, chose the day before Pesach to finally carry out the destruction order on the house of one of the "tractor" terrorists in the village of Tzur Bacher, just 2 kilometers from my house, on the Southern edge of Jerusalem. </p><p>Putting the issue of the timing (I can't even begin to write about that), and even putting aside the proven uselessness of house demotion as a deterent against future terrorism (numerous ISRAELI GOVERNMENT panels have concluded hosue demolitions have zero deterant value), want to address the fact that during this event a 20 year old Jerusalemite (resident of Jabel Mukaber, next door village to Tzur Bacher) was killed by the Israeli security forces, and you probably don't even know. It was not reported on even in today's Yediot Achranot, Israel's most widely read newspaper (it was on Ynet yesterday, their internet site). According to Israeli security forces, a man drove his car directly into a group of Border Patrol personnel, who were on hand to prevent a riot from breaking out while the hosue was being destroyed. According to local residents, the man was on his way to the post office to pay bills...</p><p>Who knows. Twenty shots were fired into the car, he died. </p><p>Another family in mourning. </p><p>Do we care? </p><p>As we head into Pesach, the holiday of liberation and freedom, just take a moment and think of all of those who do not enjoy basic freedoms. And think of the part in you that wants to be free of caring, and recognize that true freedom can only exist if we sacrifice a little of our individual "freedom," and care about our fellow people, our world and it's future. </p><p>Happy Holiday.</p></div>
</content>


    </entry>
    <entry>
        <title>Twitter for $1 Billion: Good for the Jews?</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/04/twitter-for-1-billion-good-for-the-jews.html" />
        <link rel="replies" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/04/twitter-for-1-billion-good-for-the-jews.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-65134585</id>
        <published>2009-04-06T18:35:51+03:00</published>
        <updated>2009-04-06T18:35:51+03:00</updated>
        <summary>Ok, you ask, what possibly could be the connection between the suggestion of Henry Blodgett that Google purchase Twitter for $1 billion and the Jews?[see Henry's full posting below] Well, besides the fact that there are a nice number of...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Current Affairs" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Google" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="twitter" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Valuation" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Fund Process" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Web/Tech" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>Ok, you ask, what possibly could be the connection between the suggestion of <a href="http://www.businessinsider.com/henry-blodget-google-should-offer-to-buy-twitter-for-1-billion-goog-2009-4">Henry Blodgett</a> that Google purchase Twitter for $1 billion and the Jews?[see Henry's full posting below] Well, besides the fact that there are a nice number of members of the tribe at both companies, I really am using the "Good for the Jews?" question as a way of asking two parts:<br />-Is this good for the world in general?<br />-Is this good for Israeli start-up scene?</p><p>On both counts, answer I come up with is NO!!</p><p>Regarding the world in general, or more specifically the start-up world, wacky prices paid to one-off "success" stories are never a good thing.  I am not going to start arguiing right now if Twitter has or has not brought about a real paradigm shift (as I believe Google did, not so much with search technology itself but how it was applied). (I do not believe Twitter has yet accomplished that). But paradigm shifts do not a business make (sometimes they could, a la Google). </p><p>Twitter has yet to show any clear business direction, and until they do their value is somewhere between zero and the amount of money invested in building the product and attaining the user base. </p><p>For the Israeli start-up scene, we need to be building businesses. The more entreprenaurs are fooled by Twitter-like companies that building a no-revenue company is a good idea we will sink deeper into a real depression of the tech sector here in Israel. We do not have the capital allocation in Israel that allows for silly investments (just think how many companies will get funded to be the next Twitter...if Google buys them for $1 billion).</p><h1>Google Should Offer To Buy Twitter For $1 Billion (GOOG)</h1><div class="byline">
<a href="http://www.businessinsider.com/henry-blodget">Henry Blodget</a><span class="pipe">|</span><span class="date">Apr. 3, 2009, 9:37 AM</span><span class="pipe">|</span><a href="http://www.businessinsider.com/henry-blodget-google-should-offer-to-buy-twitter-for-1-billion-goog-2009-4#comments"><img alt="comment" class="icon-left " height="12" src="http://static.10gen.com/businessinsider/assets/images/icons/icon_comment_12x12.gif?ctxt=www2009-04-01-01-34a28289516b93be729eef99d802fd3f8c4bdf95&amp;lm=1234385166000" width="12" /></a><a href="http://www.businessinsider.com/henry-blodget-google-should-offer-to-buy-twitter-for-1-billion-goog-2009-4#comments">54</a></div><div class="icon-print"><a href="javascript:window.print()">Print</a></div><div class="tags">
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  <span class="timestamp">Apr 6 2009, 09:41 AM EDT</span>
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  <td class="price" rowspan="2">367.49</td>
  <th>Change</th>
  <th>% Change</th>
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  <td class="data"><span class="negative change_negative">-2.29</span></td>
  <td class="data"><span class="negative change_negative">-0.62%</span></td>
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</div></div></div>If Google isn't in talks to buy Twitter, it should be.
<p>Specifically, it should offer the company $1 billion, cash. </p>
<p>Why?</p>
<p>Five reasons:</p>
<p><strong>Google needs a huge new growth engine and Twitter might just fit the bill.  </strong>The
current search product cycle is coming to an end.  Google needs an
"Office" to go with its "Windows."  It hasn't found one yet. 
Twitter--and real-time search--could end up being a monster.  If Google
waits around to see whether it really WILL be a monster, Twitter will
be a hell of a lot more expensive.  Remember when Yahoo's Terry Semel
whiffed on buying Google?</p>
<p><strong>Twitter is a hell of a lot more relevant to Google's
business than other big Google ideas, such as YouTube or Larry Page's
plan to have Google solve the world's energy crisis (see his crazy talk
of two years ago).  </strong>Twitter is also about communications,
which is the one part of the content-communications-and-commerce
Internet tripod that Google is still weak in.</p>
<p><strong>$1 billion is couch change for Google.</strong>  Google
generates $1 billion of cash every two months.  If Twitter ends up
being worth $0, as some people persist in thinking, Google can just say
"oops" and take a minor write-off.  If Twitter ends up being worth a
lot more than $1 billion, however, as we and others think is likely,
Google will make money.  If it ends up being a monster, Google will
make <em>a lot</em> of money.</p>
<p><strong>Twitter could conceivably threaten Google's cash cow--search. </strong> This "real-time search" meme is actually a compelling story-line. If you want to know what people are talking about <em>right now</em>,
you go to Twitter, not Google.  Twitter hasn't figured out how to make
bank off that yet, but it may well do so.  Remember how much ridicule
was heaped on Google's worthless "search engine" in the early days?</p>
<p><strong>Like Google, Twitter is already a verb.</strong>  What company do you know of that owns two verbs?</p>
<p>Would $1 billion be enough to get the Twitter boys to part with
their baby?  It might, actually.  $1 billion is still a lot of money,
especially for a company with no revenue.  And Google's global
distribution and technology infrastructure would be a help to Twitter. 
So they'd be silly not to take the offer seriousy.</p></div><br /><br /></div>
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    </entry>
    <entry>
        <title>Hit the RESET Button: A Post Purim Message</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/03/hit-the-reset-button-a-post-purim-message.html" />
        <link rel="replies" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/03/hit-the-reset-button-a-post-purim-message.html" thr:count="1" thr:updated="2009-07-15T06:35:53+03:00" />
        <id>tag:typepad.com,2003:post-63937581</id>
        <published>2009-03-11T18:26:17+02:00</published>
        <updated>2009-03-11T18:26:17+02:00</updated>
        <summary>As Purim fades out (yes, here in Jerusalem still in the last minutes of the holiday, writing this as a I wait for my daughter Hallel at her climbing wall purim party--only in Jerusalem) I am thinking beyond Purim...where do...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>As Purim fades out (yes, here in Jerusalem still in the last minutes of the holiday, writing this as a I wait for my daughter Hallel at her climbing wall purim party--only in Jerusalem) I am thinking beyond Purim...where do we go from here?  If we look back from last Purim to this Purim, gevalt has the world changed. Completely upside down from a year ago, like Purim come to life, everything upside down. </p><p>Just caught a post on <a href="http://www.pehub.com/33651/hitting-the-reset-button-the-silver-lining/">PE Hub</a>  by Jeff Busbang, on hitting the reset button. Now, Jeff didn't specifically connect to Purim, but he does mention a rabbi, so close enough. Below I paste the entire text of Jeff's post for your reading pleasuer, but bottom line, perhaps Purim should become the holiday of pushing the reset button. </p><p>Next year may we be in avery different place than we are today. Only in good ways. </p><div style="min-height: 70px;">
                <h2>Hitting the Reset Button: The Silver Lining</h2>
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                      <small>Posted on: March 9th, 2009</small>
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                <p>When
I was a kid, I was obsessed with the newly invented personal computer.
In 1982, I used my paper route and Bar Mitzvah money to purchase an
Apple II+ PC (my parents did subsidize the purchase somewhat, I
confess). I was mesmerized by the magic of the personal computer and
all its possibilities: games, programming, communications and more.</p>
<p>But what I really fell in love with was this new, magical thing
called the reset button. Don’t like where you find yourself in the
middle of Space Invaders? Hit the reset button. Frozen out in the midst
of trying to log on to a bulletin board? Hit the reset button. Mad at
your older sister for messing with your top score in Asteroids? Hit the
reset button. This magical button represented a unique opportunity to
erase the past and begin anew with a clean slate.</p>
<p>27 years later, the theme of hitting the reset button has come back
in spades. Moody’s Economy.com projects 15 million homeowners are
underwater – that is, their homes are worth less than what they owe on
their mortgages. President Obama’s latest piece of legislation in front
of Congress is aimed at allowing these homeowners to hit the reset
button with their lenders. Similar debt work outs are happening across
corporations. Throughout VC-backed portfolios (i.e., small companies)
and large companies, CEOs and CFOs are in discussions with lenders to
renegotiate their debt and attempt to hit the reset button on a new set
of terms in light of the current economic turmoil. In foreign affairs,
a similar tone is being struck. A few weeks ago, Vice President Joe
Biden declared it was “time to hit the reset button” in Washington’s
relationship with Russia and Iran, among others.</p>
<p>Will these efforts work? On the economic front, there are
pernicious, cascading effects to these “resets”. A rather depressing
but insightful recent Merrill Lynch report, titled “Some Inconvenient
Truths”, suggests there is $6 trillion in private sector (household and
corporate) debt that needs to be eliminated before we can embark on a
fresh credit cycle. To date, there has been “only” $1 trillion in write
downs. The implication? We are nowhere close to hitting bottom, and
hitting the reset button is a necessary but painful part of the process.</p>
<p>That’s the macro picture. At the micro level, I am seeing people
hitting the reset button all over the place as well. For many, the
wealth trajectory they thought they were on is no longer the case. The
expectations they may have had for themselves or their children are
being re-examined. Many are sitting down and revisiting all the
assumptions they had made a year ago about their assets, retirement and
job security. My portfolio companies are all questioning their old
assumptions and making tough choices about how much to invest ahead of
revenue, and how many products and markets they can pursue in parallel.</p>
<p>But my rabbi made an interesting point to me this weekend. He
pointed out that there is a silver lining in hitting the rest button.
Rather than simply wallow in the bad news, people can view hitting the
reset button as an opportunity, rather than a burden. It allows them to
let go of unrealistic expectations and focus on reality in a new way.
It allows them to reset priorities, zoning in on what really matters to
them and eliminating distractions. An economist’s view of this sage
rabbinical advice would be to observe that when your opportunity cost
to pursue alternative paths has plummeted around you, anything is
possible.</p>
<p>As a result of the opportunity for deep personal growth and new
direction, hitting the reset button all around the world should mean
more entrepreneurship everywhere. This trend appears to be playing out.
I met with the co-head of Harvard’s Entrepreneurship Forum last week
and she couldn’t have been more excited to tell me about the burgeoning
entrepreneurial culture that’s emerged at Harvard. “The current
economic environment has freed people up to do what they really want to
do,” she observed, “not just follow a certain path that they think they
ought to follow.” She reports that submissions to Harvard’s business
plan competition are double this year as compared to last year.
Similarly, participation at the MIT $100k competition was stronger than
ever.</p>
<p>Many economists are pointing to the parallels between our current
recession and that of the one in 1982. That was the year I learned the
magic benefits of the reset button. Hopefully others will as well.</p>
<p><em>Jeff Bussgang is a partner with Flybridge Capital Partners. Follow him on Twitter at: </em><a href="http://www.twitter.com/bussgang"><em>www.twitter.com/bussgang</em></a></p> <br /><br /></div>
</content>


    </entry>
    <entry>
        <title>Twitter: Making Fools of All of Us</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/03/twitter-making-fools-of-all-of-us.html" />
        <link rel="replies" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/03/twitter-making-fools-of-all-of-us.html" thr:count="2" thr:updated="2009-06-11T08:27:31+03:00" />
        <id>tag:typepad.com,2003:post-63671437</id>
        <published>2009-03-05T13:15:15+02:00</published>
        <updated>2009-03-05T13:15:15+02:00</updated>
        <summary>Yes, I continue to be stalked in Twitter land. I have not "twitted" (or is it "tweeted") in over a year, yet almost daily get messages that someone new has signed up to follow me on Twitter. Must be boring...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Current Affairs" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="twitter" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Valuation" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Fund Process" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Web/Tech" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>Yes, I continue to be stalked in Twitter land. I have not "twitted" (or is it "tweeted") in over a year, yet almost daily get messages that someone new has signed up to follow me on Twitter. Must be boring to follow me, as I have been standing in place in Twitter land. Yet the guys at Twitter continue to "succeed," by certain metrics. The media love them, elites all over the US have adopted it as a platform of "communication" (how much can you really say in 140 characters, perfect for the ultimate soundbite). And they continue to raise money from "serious" VCs.</p><p>Keep in mind, while they do theoretically have 6 million users (how many are like me?), as of today they have generated ZERO revenues. Nada. Nothing. </p><p>Now I think Twitter is inane enough that even as a non-profit it should be shut down -- I posit that their value proposition is negative. But that's another discussion. Now I want to limit myself to the question of value creation...why is Twitter worth anything in this environment, shouldn't the VCs wait to invest more until after some business model emerges (and has traction)? How much does it cost to run Twitter after all??</p><p>Twitter is succeeding at making fools of all of us that are calling for sanity in start-up culture, and has a negative influence on entrepreneurs (everyone wants to be Twitter). </p><p>Anyway, I think Jon Stewart best sums up my personal frustration on the service and its contribution to the world...see here:</p>
<div class="cc_box" style="position: relative;"><a href="http://www.comedycentral.com" style="display: inline; float: left; width: 60px; height: 31px;" target="_blank"><div class="cc_home" style="border-style: solid; border-color: #cfcfcf; border-width: 1px 0px 0px 1px; background: transparent url(http://www.comedycentral.com/comedycentral/video/assets/syndicated-logo-out.png) repeat scroll 0% 0%; float: left; width: 60px; height: 31px; -moz-background-clip: -moz-initial; -moz-background-origin: -moz-initial; -moz-background-inline-policy: -moz-initial;" /></a><div style="border-style: solid; border-color: #cfcfcf; border-width: 1px 1px 0px 0px; overflow: hidden; font-family: Arial,Helvetica,Verdana,sans-serif; font-style: normal; font-variant: normal; font-weight: bold; font-size: 10px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; float: left; width: 299px; height: 31px; color: #707070; position: relative;"><div class="cc_show" style="overflow: hidden; position: relative; background-color: #e5e5e5; padding-left: 3px; height: 14px; padding-top: 2px;"><a href="http://www.thedailyshow.com/" target="_blank">The Daily Show With Jon Stewart</a><span style="position: absolute; top: 2px; right: 3px;">M - Th 11p / 10c</span></div><div class="cc_title" style="padding: 1px 3px 3px; overflow: hidden; font-size: 11px; color: #868686; background-color: #f5f5f5; line-height: 14px; height: 21px;"><a href="http://www.thedailyshow.com/video/index.jhtml?videoId=219519&amp;title=twitter-frenzy" target="_blank">Twitter Frenzy</a></div></div><embed allowfullscreen="true" allownetworking="all" allowscriptaccess="always" bgcolor="#000000" flashvars="autoPlay=false" height="301" src="http://media.mtvnservices.com/mgid:cms:item:comedycentral.com:219519" style="float: left; clear: left;" type="application/x-shockwave-flash" width="360" wmode="window" /><div class="cc_links" style="border-style: none solid solid; border-color: -moz-use-text-color #cfcfcf #cfcfcf; border-width: 0px 1px 1px; float: left; clear: left; width: 358px; font-family: Arial,Helvetica,Verdana,sans-serif; font-style: normal; font-variant: normal; font-weight: normal; font-size: 10px; line-height: normal; font-size-adjust: none; font-stretch: normal; -x-system-font: none; color: #b9b9b9; background-color: #f5f5f5;"><div style="width: 177px; float: left; padding-left: 3px;"><a href="http://www.thedailyshow.com/full-episodes/index.jhtml" target="_blank">Daily Show Full Episodes</a><br /><a href="http://www.comedycentral.com/shows/important_things/index.jhtml" target="_blank">Important Things With Demetri Martin</a></div><div style="width: 177px; float: left;"><a href="http://www.indecisionforever.com" target="_blank">Political Humor</a><br /><a href="http://www.jokes.com" target="_blank">Joke of the Day</a></div><div style="clear: both;" /></div><div style="clear: both;" /></div></div>
</content>


    </entry>
    <entry>
        <title>Investing for the Long Term: Sounds Nice, But Who Pays the Bills Meanwhile?</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/03/investing-for-the-long-term-sounds-nice-but-who-pays-the-bills-meanwhile.html" />
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        <id>tag:typepad.com,2003:post-63578063</id>
        <published>2009-03-03T14:13:12+02:00</published>
        <updated>2009-03-03T14:13:12+02:00</updated>
        <summary>As a fan of the musings of Brad Feld I often read his blog posts and then stop to think for a minute or two how I incorporate his thoughts into my own outlook and daily work. Below is the...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Current Affairs" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Fund Process" />
        
        
<content type="html" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
&lt;div xmlns="http://www.w3.org/1999/xhtml"&gt;&lt;p&gt;As a fan of the musings of &lt;a href="http://www.feld.com"&gt;Brad Feld&lt;/a&gt; I often read his blog posts and then stop to think for a minute or two how I incorporate his thoughts into my own outlook and daily work. &lt;/p&gt;&lt;p&gt;Below is the full text a recent posting of Brad&amp;#39;s, but bottom line he is coming to remind us of the difference between speculation and investment. The work of a Venture Capitalist is to invest, not to speculate. &lt;/p&gt;&lt;p&gt;I wholeheartedly agree with Brad, but my question is while we are patiently tending to our investment[s], who pays the bills? The answer is obviously our LPs (Limited Partners) who pay us not only a success fee (usually 20% of the profits) but also a management fee (standard is 2% of total committed capital of the fund). From this fee the VC is expected to pay their overhead and take something home everything month, i.e. to draw a salary. &lt;/p&gt;&lt;p&gt;When the cycles are short, 2-3 years, and new funds get raised every 2 years, these fees are almost ignored. But do they add up, and VCs managing multiple overlapping funds can sometimes be double or triple dipping. What happens when the cycles are more like 5-10 years? When exits take longer to happen (assuming they do), the VCs can get stretched in etrms of remaining committed to the investment process (rather the much easier speculating). For the VC to remain focus in a stretched out cycle truly demands a dedication over and above the assumptions that based the original fund formation. &lt;/p&gt;&lt;p&gt;What to do? First, to communicate with your LPs. Let them know what the effect of a stretched out cycle is on the VC, and what the potential implications will be (extending the investment period, for example). Plan for the long haul -- redo the assumptions based on the [lack of] visablity that currently exists. This all needs to &amp;quot;trickle down&amp;quot; to the assets themselves, the portfolio companies, who need to be in step regarding the VCs assumptions and forecasts. &lt;/p&gt;&lt;p&gt;I believe if everybody can be kept on the same page, value will continue to be generated, with minimal friction. When one player in the ecosystem&amp;#0160; is out of step, however, you have an implosion. &lt;/p&gt;&lt;p&gt;For us at Jerusalem Capital, we are planning for the long term, which has affected our investment philosophy and process. Like Brad, I remain optomistic, but we will need to stay focused and on message. &lt;/p&gt;&lt;p&gt;Now here is Brad&amp;#39;s original posting:&lt;/p&gt;

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 &lt;h1 style="margin: 0in 0in 0.0001pt;"&gt;&lt;span&gt;&lt;a href="http://www.feld.com/wp" title="(http://www.feld.com/wp)"&gt;&lt;span style="font-size: 16.5pt; font-family: &amp;quot;Arial&amp;quot;,&amp;quot;sans-serif&amp;quot;; color: #888888; font-weight: normal;"&gt;Feld Thoughts&lt;/span&gt;&lt;/a&gt;
 &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/h1&gt;
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&lt;p class="MsoNormal" style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black; display: none;"&gt;&lt;o:p&gt;&amp;#0160;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;

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 &lt;p style="margin: 12pt 0in 2.25pt; line-height: 115%;" xmlns=""&gt;&lt;a href="http://feedproxy.google.com/%7Er/FeldThoughts/%7E3/qnwp6zZSSeY/investment-vs-speculation.html"&gt;&lt;strong&gt;&lt;span style="font-size: 13.5pt; line-height: 115%; font-family: &amp;quot;Arial&amp;quot;,&amp;quot;sans-serif&amp;quot;; color: #000099; text-decoration: none;"&gt;Investment vs.
 Speculation&lt;/span&gt;&lt;/strong&gt;&lt;/a&gt; &lt;/p&gt;
 &lt;p style="margin: 6.75pt 0in 2.25pt; line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: #555555;"&gt;Posted: 02 Mar 2009 05:41 AM PST&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;As I read the &lt;a href="http://www.berkshirehathaway.com/letters/2008ltr.pdf"&gt;&lt;strong&gt;&lt;span style="color: #000099; text-decoration: none;"&gt;Berkshire
 Hathaway 2008 Annual Report&lt;/span&gt;&lt;/strong&gt;&lt;/a&gt;, a thought kept popping into my
 mind that had also come up over and over again while reading Bogle’s &lt;a href="http://www.amazon.com/gp/product/0470398515?ie=UTF8&amp;amp;tag=feldwebsite-20&amp;amp;linkCode=as2&amp;amp;camp=1789&amp;amp;creative=9325&amp;amp;creativeASIN=0470398515"&gt;&lt;strong&gt;&lt;span style="color: #000099; text-decoration: none;"&gt;Enough: True
 Measures of Money, Business, and Life&lt;/span&gt;&lt;/strong&gt;&lt;/a&gt;.&amp;#0160; “Be an investor,
 not a speculator.”&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;As a venture capital &lt;em&gt;&lt;span style="font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;;"&gt;investor&lt;/span&gt;&lt;/em&gt;, I have a long
 term time horizon on my investments.&amp;#0160; Since I’m investing very early in
 the life of a company, I’m usually an investor for five or more years.&amp;#0160;
 Sometimes I’m an investor for over ten years.&amp;#0160; I’m rarely an investor
 for less than a year, although it happens occasionally.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;I don’t invest directly in the
 public markets and I haven’t for a long time.&amp;#0160; Periodically I end up
 with a public company stock as the result of the sale of a company I’m an
 investor in to a public company, or via that mythical thing called an
 “IPO”.&amp;#0160; In these cases, I have a very specific strategy for exiting my
 position in the public company over time.&amp;#0160; &lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;I do have public market exposure,
 primarily through a combination of index funds (and equivalents) and some
 hedge fund investments with friends.&amp;#0160; However, I pay zero attention to
 this on a daily, weekly, or monthly basis.&amp;#0160; When I look at the aggregate
 performance over any meaningful period of time, it is irrelevant when
 compared to my performance as a VC and angel investor.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;When I reflect on this, I realize
 that I spend 99.9% of my time as an investor and 0.01% of my time as a
 speculator.&amp;#0160; Whenever I realize that I’m in a speculative thought
 process (such as noticing the Dow on CNN on the ubiquitous airport TVs), I
 immediately try to stop.&amp;#0160; My goal is to spend 100% of my time as an
 investor.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;Not surprisingly, there’s a huge
 amount of noise going around the system about speculation that is
 masquerading as investment.&amp;#0160; Worst, the two get conflated on a regular
 basis in the context of what the government should be doing (e.g. incenting
 “investment” when they are merely either &amp;quot;incenting speculation” or
 “encouraging speculation”).&amp;#0160; Of course, the endless stream of talking
 heads in the media don’t help this distinction.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;When I read Buffett or Bogle, the
 distinction between investment and speculation is painfully clear to
 me.&amp;#0160; I believe that much of the pain the global financial markets are
 feeling right now is a direct result of speculation.&amp;#0160; As a result, I’m
 trying to come up with some simple parables for “investment vs. speculation.”&amp;#0160;
 For example, “if you don’t understand what you are investing in, it’s
 speculation.”&amp;#0160; Or, “if your time horizon is less than two years, it’s
 speculation.”&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;One of values I’ve always adhered
 to is that “I’m an investor, not a speculator.”&amp;#0160; Now that the government
 is deeply in the mix, I think we need to spend a lot more “system time”
 thinking about how to incent and motivate investment, and how to avoid
 speculation.&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;&lt;a href="https://feedads.googleadservices.com/%7Ea/tE14V_M339tpiSIeNTo11U869tc/a"&gt;&lt;strong&gt;&lt;span style="color: #000099; text-decoration: none;"&gt;&lt;img border="0" id="_x0000_i1025" ismap="ismap" src="https://feedads.googleadservices.com/%7Ea/tE14V_M339tpiSIeNTo11U869tc/i" /&gt;&lt;/span&gt;&lt;/strong&gt;&lt;/a&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p class="MsoNormal" style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;&lt;a href="http://feeds2.feedburner.com/%7Eff/FeldThoughts?a=qnwp6zZSSeY:zU5-sgegCmA:yIl2AUoC8zA"&gt;&lt;strong&gt;&lt;span style="color: #000099; text-decoration: none;"&gt;&lt;img border="0" id="_x0000_i1026" src="http://feeds2.feedburner.com/%7Eff/FeldThoughts?d=yIl2AUoC8zA" /&gt;&lt;/span&gt;&lt;/strong&gt;&lt;/a&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;p class="MsoNormal" style="line-height: 140%;"&gt;&lt;span style="font-size: 10pt; line-height: 140%; font-family: &amp;quot;Georgia&amp;quot;,&amp;quot;serif&amp;quot;; color: black;"&gt;&lt;img border="0" height="1" id="_x0000_i1027" src="http://feeds2.feedburner.com/%7Er/FeldThoughts/%7E4/qnwp6zZSSeY" width="1" /&gt;&lt;o:p&gt;&lt;/o:p&gt;&lt;/span&gt;&lt;/p&gt;
 &lt;/td&gt;
 &lt;/tr&gt;
&lt;/tbody&gt;&lt;/table&gt;

&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;
</content>


    </entry>
    <entry>
        <title>Making Things Easy (or at least easier...), or Pay Less Legal Costs</title>
        <link rel="alternate" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/02/making-things-easy-or-at-least-easier-or-pay-less-legal-costs.html" />
        <link rel="replies" type="text/html" href="http://vcinjerusalem.typepad.com/vcinjerusalem/2009/02/making-things-easy-or-at-least-easier-or-pay-less-legal-costs.html" thr:count="0" />
        <id>tag:typepad.com,2003:post-62734115</id>
        <published>2009-02-12T13:09:42+02:00</published>
        <updated>2009-02-12T13:09:42+02:00</updated>
        <summary>Long ago a business colleague told me that he operates according to the KISS principle. Now, he was a nice guy, reasonable good looking, but I was not interested in that kind of relationship. He quickly explained that KISS stands...</summary>
        <author>
            <name>Jacob Ner-David</name>
        </author>
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Capital" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Venture Fund Process" />
        <category scheme="http://www.sixapart.com/ns/types#category" term="Web/Tech" />
        
        
<content type="xhtml" xml:lang="en-US" xml:base="http://vcinjerusalem.typepad.com/vcinjerusalem/">
<div xmlns="http://www.w3.org/1999/xhtml"><p>Long ago a business colleague told me that he operates according to the KISS principle. Now, he was a nice guy, reasonable good looking, but I was not interested in that kind of relationship. He quickly explained that KISS stands for Keep It Simple Stupid. Ahh...that king of kiss sounded great to me. </p><p>We have enough complexity in forming start-ups, given the challenging nature of a new business, the last thing we want is to add layers of complex corporate mechanisms. KISS sounded like a great principle, and one that I have tried to live by...in the face of law firms doing their duty and looking to make a living. </p><p>This week we at Jerusalem Capital were involved in a refinancing of one company, M&amp;A transaction of another, and "regular" course of business in a few others. And there is my new Hanaton project (more on that some other time), non-profit board meetings, etc. Throughout all of that I struggle to keep people working according to KISS. </p><p>With that in mind was pleased to come across a posting (pointed out by <a href="http://www.feld.com" target="_blank">Brad Feld</a> )from <a href="http://www.techstars.org" target="_blank">Techstars</a> giving actual copies of financing documents for a typical seed stage deal. The full posting and the docs themselves can be found <a href="http://www.techstars.org/2009/02/07/techstars-model-seed-funding-documents/">here</a>. If that link doesn't work for you, try http://www.techstars.org/2009/02/07/techstars-model-seed-funding-documents/. </p><p>In these challenging times, we need to do everything we can to strip away noise and focus on what's important. Thanks to Techstars, at least the financing part can be kept to KISS.  </p><br /></div>
</content>


    </entry>
 
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