Monday, October 29, 2007

They are artists-slash-entrepreneurs

Radiohead newest album ‘In Rainbow’ seems to be the last stroke at the dying music industry. The band made available the download of its album for any amount that their fans were willing to pay. The strategy paid off and the release, just in the first day, made an astonishing amount of $6 MM (1.2 million downloads at an average price of $5). All the money went straight to the band’s pocket. Even though these numbers are not official several other bands and artists have shown some interest to release themselves from the major labels – e.g. Paul McCartney, Madona, Oasis, Jamiroquai and Nine Inch Nails – and start to sell its records directly to its audience. Bands and solo artists are abandoning their former employee spirit and are embracing a rising entrepreneurial desire that is about to change the industry forever.

Download it (but don't forget to pay what you think is worth)

The duo Aaron Yonda and Matt Sloan is another example of artists that are getting control over their destiny. Last year they started to record a series of short-film called Chad Vader - a parody with the dreadful character Darth Vader - to a local cable network, 101 Channels, but their show was canceled in its first episode. They didn’t let it get on their way and continued to produce the show and distributed it on the YouTube. The Show became a major hit with almost 19 MM views, which made YouTube invites then to participate in the new professional partnership program – i.e. part of the revenue gained with ads will be shared with the video producers – and they are planning to release the series’ DVD sometime soon.






These are examples how internet has provide the medium to people to explore not only all their potential as artists, but as entrepreneurs[bb] as well. The opportunity are enormous all it takes is the desire to make it better, to make it different, to make it unique; and of course a computer.


Leonardo Dias

Analista da empresa de venture capital Monashees Capital. Anteriormente, trabalhou em empresas de meios de pagamentos. Estudante do curso de Administração de Empresas na FEA-USP

Analyst at the venture capital firm Monashees Capital. Prior, worked at ways of payment company. He is a business administration student at FEA-USP


Friday, October 26, 2007

User-generated ad airing on World Series Sunday afternoon

“I was sitting on the bus and I got this e-mail on my phone: ‘We represent Apple and we’ve seen what you have produced and we’d like a chat with you.’”
The quote is from the 18-year-old English student Nick Haley, who produced the “ad” bellow for the new iPodTouch with images from Apple’s very own website and an energizing tune by the Brazilian hot band Cansei de Ser Sexy[bb].



The video quickly became a kind of “underground” hit on YouTube and eventually got the attention of some Apple execs. Even though the ad will receive a “professional treatment” by Apple’s longtime Agency, it’s a major breakthrough for UGC – user-generated content.
First, the Internet disintermediated the commerce, directly connecting businesses and consumers – Amazon, Dell, and eBay were born. Today, it is blurring the line between consumers and producers, and a handful of entrepreneurs are developing business models to harvest the power of the crowd. In the advertising crowdsourcing arena, there are GeniousRocket and BlinkBox, for instance.
It is unlikely that ad agencies will completely disappear and hordes of organized creative people working at home will take place. However, the middleman is clearly losing power and professional content producers will have to reinvent themselves as we witness the rise of the “Creativity Democracy”. As a popular American president once said - “May you live in interesting times”.
Student’s Ad Gets a Remake, and Makes the Big Time - New York Times

Update
Bellow, Apple's official version that aired on Sunday.




Carlo Dapuzzo

Carlo Dapuzzo is a Senior Associate at the VC firm Monshees Capital. He holds a BS in Production Engineering from Universidade de São Paulo, with a one-year scholarship at McGill University.

Wednesday, October 24, 2007

Empreendedorismo, Garrincha e Pelé

Pelé e Garrincha revolucionaram o futebol, não há dúvidas sobre isso, mas que raios eles tem a ver com o empreendedorismo?

Vamos falar primeiro do Garrincha. Manuel Francisco dos Santos nascido em Pau Grande no Rio de Janeiro e considerado o segundo maior jogador de futebol do Brasil (ficando apenas atrás de Pelé) foi co-responsável pela criação do mito "Brasil é a terra do futebol" ao apoiar a seleção nas vitórias dos mundiais de 1958 e 1962. Seu estilo inspirado de jogar quebrava os defensores e apesar de suas famosas pernas tortas Garrincha possuia um dominio ímpar sobre a bola. Seu estilo de vida não corroborava sua genialidade em campo; alcoolismo, acidentes de carro...Seu estilo de vida apagou seu futebol, e Garrincha acabou falecendo aos 49 anos por consequencia de seu alcoolismo e no total ostracismo como mostra o livro Garrincha Estrela Solitária[bb]

Edson Arantes do Nascimento, o Pelé, é considerado até hoje o maior jogador de futebol de todos os tempos (apenas os Argentinos discordam). Pelé inovou na forma de jogar, aliando pela primeira vez um talento incomparável com uma disposição física de atleta e lançando o que viria a ser o futebol moderno: técnica, força, velocidade. Sua forma de jogar era tão dispar de seus pares e oponentes que Pelé conseguia realizar façanhas inacreditáveis com a bola e obter resultados ainda mais memoráveis . Co-responsável pelo tri-campeonato mundial de futebol (1958, 1962 e 1970) Pelé é ainda hoje um ídolo e um exemplo de profissionalismo. Esse talvez seja o maior diferencial de Pelé, seu profissionalismo, a forma como conseguiu construir uma imagem fora do campo tão ou mais impactante que suas jogadas sensacionais. Sua história pode ser vista no filme Pelé eterno[bb].

Garrincha e Pelé tinham grande potencial. Garrincha não conseguiu transformar sua carreira em um empreendimento de sucesso, já Pelé criou a principal marca associada a um jogador de futebol. O que os diferencia? Na minha visão o empreendedor precisa sim de talento, precisa de inspiração, mas são suas ações "fora do campo" que vão determinar o sucesso de seu empreendimento. Responsabilidade, foco e profissionalismo são tão ou mais importantes que paixão, técnica e disposição.

Todo empreendedor iniciante com grande potencial deveria se perguntar se o caminho que segue é mais pro Garrincha ou mais para o Pelé, a resposta a esta pergunta vai indicar a direção: solidão ou eternidade.


Marcos Tanaka

CEO do boo-box.com, empresa de marketing contextual. Estrategista, trabalhou como consultor de negócios para equipes de executivos de algumas das maiores empresas presentes no Brasil. Formado em Engenharioa Mecaninca pela UNICAMP

Some thought provoking arguments about inventiveness and entrepreneurship

Is really the necessity mother of invention? Are entrepreneurs/inventors some rare phenomena of geniality that once in while appear in the middle of mediocrity? Is a good invention or business always accepted?

I know that is a common sense to think that an outstanding entrepreneur/inventor are capable to just see a need and then find a way to fulfill that need with the perfect invention/business. Although it might be true to some inventions/business – e.g. the A-bomb, iPod or the pizza delivery service - the bulk of inventions/business are things that are create just from the sheer passion of its inventor or entrepreneur for creation, curiosity and entrepreneurship. That is why even though we have almost 70K patent registration in the USPTO only a few of then see the bright light of the market. And a lion’s share of new business faces mortality in the first years.

A clear example of that would be the phonograph invented by Thomas Edison; he did not have a clue what would be the use for that equipment. He suggested 10 uses for the machine - e.g. to record the last words of dying people was one of his suggestions. It never crossed his mind that the equipment could be used to play music. When people started to use it to listen to their favorite tunes he got pretty upset and thought that this was not the best way to explore the equipment. Finally, after 20 years he admitted that the equipment could be used that way and started to sell music records.

We see examples like that everyday inventors/entrepreneurs creating new solutions that they are not quite sure who would use it or how he or she would make some money out of it. But is that a problem? I don’t think so. Because let our creativity free is the only way, so far, that we have found to create things that are truly innovative like: airplanes, microwave oven, friendster and blogs.

Another questionable point of view regarding creation of new solution is the aura of geniality of inventors/entrepreneurs. This might be a product of the ‘patent bias’, which forces entrepreneurs and inventors to forget contributions from the past in order to register something clearly new; and therefore something that can be registered. Instead of seeing then as people in touch with the zeitgeist that have made the last marginal contribution to a string of past inventions, which finally made that particular thing useful; we tend to see then like a Zeus that just sprung out Athens from their forehead.

James Watt is considered the father of the industrial age because of his water pump device moved by steam, which accordingly to the legend was inspired by a Kettle. But it is quite often forgot that Thomas Newcomen had invented 57 years before a very similar machine that was moved by steam and that particular one was inspired by Thomas Saverty; which was inspired by a machine from Denis Popin, that was inspired by a blueprint from Cristian Haygens, so on and on. Each of those inventors had to stand on the shoulder of a previous giant to see farther.

This distorted view makes ordinary people think that the capability to create new solutions (business/inventions) is a thing beyond their reach. And that is in my opinion why most of the people never think about develop new solutions; they just leave it to the ‘genius’. A more precise divulgation of what really were the processes to create a solution would make people realize that all it takes is hard work, a little bit of creativity, a little bit of luck and more hard work.

Finally, even though you have come up with an outstanding solution there are still some hurdles that must be overcome in order to make your solution a hit.

First, you have to create a solution that is economically better than the previous solutions that are in use. People must be able to see that they are better off with your invention. Then you have to face the social value and prestige that older inventions have. And this might prove to be the most difficult part. In time, there are vested interests in our society that make harder for a good invention to gain its space. Hybrid cars are a clear example of that dynamic in our society.


I was inspired to write this post by an amazing book[bb] called "Guns, Germs and Steel"that has changed the way I understand the world.


Leonardo Dias
Analista da empresa de venture capital Monashees Capital. Anteriormente, trabalhou em empresas de meios de pagamentos. Estudante do curso de Administração de Empresas na FEA-USP

Analyst at the venture capital firm Monashees Capital. Prior, worked at ways of payment company. He is a business administration student at FEA-USP