At Osage Venture Partners, we don’t invest in consumer technology. For those who read our occasional blog posts or who have browsed our website, it should be clear that we are business technology investors. Personally I do not understand leading edge consumer behavior and would have a hard time guessing what the next trend will be. I certainly respect the investors who do this well and think they deserve all the credit they get.
Consumer trends do impact business technology, as a worker (whether an employee, staff member, etc.) can be thought of as a consumer with a purpose. When the purpose is understood, a product that serves the purpose has an ROI, and thus can be rationally assessed. Business products have lifecycles that are much longer than most consumer products and are much less subject to flavors of the day. Ubiquity for consumers is uncool. Ubiquity in business means efficiency. Scale for consumers is not their problem. Scale for businesses is a slide down the cost curve and up the profit curve. Facebook’s success will be its downfall
Here are some of the reasons I am short on Facebook –
Sure – it may empower a few more third world revolutions, but the biggest first world revolution for Facebook will be where its users go next.
Stay tuned for my views on LinkedIn and why I am long on the benefits of a business network.