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Great post from Dana Boyd about the new digital gifts that Facebook released recently. After ranting randomly about rampant commercialism, she gets to the good stuff; analyzing gift giving dynamics (self worth, scarcity, levels of value, reciprocity, importance of timing) and how Facebook’s release measures up to that (spoiler – not very well). Well worth reading.

Hotornot.com were probably the first in the US to experiment with digital gifting, James Hong also blogged about it recently in context of the LiveJournal release of digital flowers.

Update: Read James Hong’s reactions to Dana’s post here

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I’ve been thinking a bit about the many different flavors of user generated content models; wikis, blogs, discussion boards, etc, and trying to come up with some sort of framework about what works best for which purpose. It seems that non-fiction user generated content can be categorized into three different types:

    1) “One right answer” content (e.g. dictionary definitions, lyrics to a song, plot summaries etc)

    2) “Many right answer” content (e.g. recipes. I have one recipe for meatballs. You have another. Both produce meatballs if followed, so both are “right”. Yet your meatballs may be juicy and suculent while mine may just suck.)

    3) “No right answer” content (e.g. Answers to question like “Who was the greatest shooting guard of all time?” or “What should we do in Iraq?”. These are conversations that can be debated without ever getting to a “right answer”).

These seem to match up best with three models of organizing user generated content:

    1) Wikis. Anyone can contribute and edit content, so only content that is generally agreed to remains in place. (Not quite the same thing as being “right”, but certainly a proxy). The contributing authors’ names are de-emphasized because identity of the contributor is not important when dealing with some canoncial truth. Wikipedia is of course the best example, but others include wikiXbox360 (a Wetpaint powered site) [game cheats are a great example of "one right answer" content], Battlestar Wiki, the Wikia sites, and many more.

    2) User generated databases, enabling rating and reviewing. Allrecipes.com allows users to submit, rate and review recipes, so that my horrible meatball recipe gets buried and your wonderful meatball recipe bubbles to the top. The same principles apply to Youtube, and to the reviews from sites like Yelp, Flixster and Amazon. Reviews somehow seem to behave more like “many right answer” than “no right answer”, perhaps because they are not meant to be part of the give and take of an argument. But because the identity of the reviewer, recipe contributor, or videographer is important (as an indicator of quality, or based on history, as an indicator of your liklihood to approve), the contributing author’s name is central to these sorts of databases.

    3) Message boards and blogs. Although some claim that the web is a conversation, its only primarily blogs and message boards that carry out this promise. It’s here that you see call and response behaviour carried out, both within a message board or blog (through comments discussion) or across blogs as posts spur counter posts. In this richness of debate, once again, identity of the author is critical, as is the case in an offline conversation. “Who said that?”, or “Where did you read that” is a common response to a quoted opinion. With no objective measurement of truth or value (unlike “one right answer” and “no right answer” models), rating and ranking makes less sense and each comment stands on its own and can be responded to independently.

    Even within a single topic, there is room for all these models to coexist. For instance, in travel, Wikitravel provides the objective facts about travel destinations in wiki format. Yahoo!’s Trip Planner and TripAdvisor use ratable user generated databases to the “many right answer” problems of sample itineraries and hotel reviews. Lonely Planet’s Thorn tree and GridSkipper lead with Q&A style message boards and thought provoking blog posts to start conversations. Each have their place.

    When there is a mis-match between model and content type, there can be bad results. The best example of this was the LA Times’ experiment with a wiki editorial a couple of years ago. Mixing a “one right answer” model with “no right answer” content led to chaos!

    If I could, I’d make this post a wiki as I think there is “one right answer” to this model for user generated content, and I’m not sure that I have it right yet. As the next best thing, I’d welcome comments.

    Update: Some good comment discussion below from folks like Rich Barton (Founding CEO of Expedia, Zillow), Gil Penchia (CEO of Wikia) and others. If you’re reading this in RSS, its worth clicking through for the comments

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New York Magazine has a great article in its current edition where it attempts to understand the psyche of the users of social networks, especially the younger users. Although as investors and entrepreneurs, we do our best to get into the heads of these users, many of us are a generation (or at least half a generation!) too old to be of this demogrpahic. The article won’t have much new to say to regular readers of Dana Boyd and Clay Shirky, both of whom are quoted in the article, but its worth reading none the less.

The author, Emily Nussbaum, has been tracking this theme for several years and wrote a good story in the NYTimes a couple of years ago on teen blogging that is also a good read.

Nussbaum talks about younger internet users’ willingness to reveal their private lives on the Internet (blogging, posting photos, sharing “private” details on myspace or facebook) as causing the first true generation gap since rock and roll 50 years ago. She satirizes the older generation’s “disgusted, dismissive squawk” as going something like this:

Kids today. They have no sense of shame. They have no sense of privacy. They are show-offs, fame whores, pornographic little loons who post their diaries, their phone numebrs, their stupid poetry- for God’s sake, their dirty photos! – online. They have virtual friends instead of real ones. they talk in illiterate instant messages. They are interested only in attention – and yet they have zero attention span, flitting like hummingbirds from one virtula stage to another.

Nussbaum highlights three changes in the mindset of younger internet users who grew up as Digital Natives:

They think of themselves as having an audience

They have accepted that in a world of cellphone cameras and security videos and Google, there is no guarantee of privacy anyway. Whereas once only celebrities and politicians had to parse every sentence, these users have learned to modulate their voices to address their constant audience. They have learned the coping skills of Paris Hilton: enjoy the attention instead of fighting it and do your own publicity before someone does it for you. One telling quote “why go to a partiy if you’re not going to get your picture taken?”

They have archived their adolescence

Unlike older generations, whose memories of their youth are largely centered around yellowing old photos in shoeboxes and the occasional artifact – a trophy or an award, this generation has a detailed history of their lives stored digitally. This archive is open to anyone – potential employers, spouses, friend – but most importantly it’s open to its creator, who can dip back into her past with ease. Its certainly open to online predators and pedophiles too – but worrying about that is akin to saying “How can you move to New York? You’ll get mugged!” in the minds of these users who have grown up learning to deal with porn popups and IMs from dodgy strangers.

Their skin is thicker than yours

Public life is fun. It’s creative. It’s where your friends are. It’s theatre, but it’s also community. But the flip side of all of this is that you also open yourself up to shaming, to snark, to anonymous flaming. These internet users can feel embarassment and absorb it without shutting down. Quoting another of Nussbaum’s interviewees “Well, I guess you have to be sort of honored that someone takes the time to write about you, good or bad”.

The key takeaway for me is that user generated content on social networks (whether away messages on AIM or posts on the Wall at Facebook or restaurant reviews at Yelp) is as much about performance (for an audience) as it is about communication. Self expression is not about what I think, its about what I want you to think about what I think.

In an offline world, my self expression is limited to choosing from a predefined set in a confined space: which bumper sticker will I put on my car, which poster will I put on my dorm room wall, which colored charity band will I wear on my wrist. In each case, I’m carefully choosing my “self expression” to make sure that it casts me in the light in which I want to be seen. Online, my self expression is unbounded. As is often the case, online adoption occurs fastest when it mirrors existing offline behaviour and improves it, and we definitely see this in the area of social networks.

So while I highly recommend reading the article, and agree with a lot of its observations, I ultimately don’t think that this generation is so hard to understand. They’re just like us, only moreso.

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I subscribe to Harvard Business Review but rarely read it – the long articles intimidate me! However, a friend of mine recently pointed me to a fantastic article in the October 2006 edition entitled “Strategies for Two-Sided Markets” …

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I’ve previously posted on the importance of distribution during the initial phase of a startups life. To be more accurate, I think that distribution is the most important factor for a consumer facing company competing in a new category.

However, …

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Deciding to take outside investment from a VC firm and bring in a new co-owner for your business is a critical decision. Entrepreneurs often want to know how exactly a VC will help once they’ve invested and what could change …

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Well we were hoping not to announce our investment in Flixster until they got a PR firm engaged, but Mike Arrington at Techcrunch has his sources and broke the news tonight.

We’re very excited to partner with Joe and

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Ask the VC points to a good post by Matt Macall at his blog VC Confidential about why startup entrepreneurs should not get too focused on the issue of control and of owning more than 51%.

In a nutshell, he …

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The best part of being a ‘VC’ is meeting passionate entrepreneurs and listening to pitches about how their idea is going to change the world. Since I joined Lightspeed, I’ve found myself meeting amazing people and debating revolutionary ideas on …

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There have been a lot of posts on startups laying people off, losing founders or closing down in the last couple of months, part of the natural cycle in the valley. But what has disturbed me has been …

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