VentureBlog Trackback for There's No Accounting For Taste
I am sure David Hornick is right about about VCs being a bad proxy for mass market purchases. However, what about focus groups, surveys and other time-tested methods of determining whether a mass-market product has appeal? I am not saying these tools are always right, but presumably deciding whether an Enterprise tool will sell enough to make money is also a risk - even if all the people you call say that they would love it.
Are not there any VCs that specialize in mass-market-type companies?
I am sure David was writing specifically about himself and the areas he invests in. But I do see curiously little information on how VCs use these pretty much standard risk-management tools, like focus groups, that large consumer companies utilize all the time. Perhaps it is not that these products are poorly suited for VC backing as much as the fact that most tech VCs come from a more hardened tech or finance backgrounds and less often from a consumer market ones.