UKNM: Re: UKNM Digest V1 #204

[aaa]

From: Anthony Appleby

uknmatl [dot] uk [dot] com

http://www.worldsoccernews.com

Re: Anyone got capital?


There is no doubt that having a 'name' behind a fund raising issue 

contributes highly to the success of the fund raising.  In my own 

back yard I only have to look at the name Peter Wilkinson 

(Freeserve architect) behind Planet Football to realise why a 

lacklustre set of sites with lacklustre traffic figures managed to gain 

a valuation of over �26 million.


Sean Phelan mentions the lastminute team backed by a group of 

'known' telecom consultants, and QXL by an FT journalist.


However, I think the generalised lack of funding in the UK lies not 

so much in the lack of intelligent MBA students starting up 

ventures as Sean Phelan suggests (for there are many of them) but 

that there is a wide void between those who 'can' set up functional, 

money taking, traffic generating internet sites, and those who can 

"reasonably be expected to be able to write, create financial 

models, do market research and network properly."


I suggest that the MBA students have as little idea as anyone else 

of how to actually make money from an internet site though they 

may think they know, whereas those who have been in the front 

line have often actually experienced first hand the success of 

advertising sales, affiliate programs and e-commerce.


The gap is between the expectations of the internet and what it 

actually delivers. It is the expectations and the dream that raises 

the money not the reality. It is also the expectations and the dream 

that keeps share prices rising and rising (eg Durlacher, -of 

football/music 365 fame, VirtualInternet etc) and not the reality.


Plans that I have seen that have raised money are usually based 

on hugely overoptimistic sales figures for banner advertising 

revenue and e-commerce take up etc, with very little to back them 

up. Dream beats reality.


I suggest that the creation of a better forum for these two groups of 

people to meet would benefit us all in the long term. Temper the 

dreams of the creative writers on the one hand and raise the quality 

of the plans of those with experience on the other.


I personally admit to not having a financial background or 

experience in raising money and am looking for someone with 

money raising savvy to help me and I am sure I am not the only 

one.


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