Top 10 Reasons Why Large Companies & Government Fail at Crowdsourcing Data

Why Do Big Companies Fear Using Crowdsourced Data?

We have been crowdsourcing map data for over 15 years, long before the term "crowdsourcing" was coined by an article in 2006.  The more I speak with large companies about crowdsourced data the more I begin to understand why most large companies and governments fail at collecting and using crowdsourced data for their benefit.

Why Is Digital Advertising So Hard Understand?

Online advertising can be challenging to understand for several reasons:

Silicon Valley vs. Southern California VC Investors

Silicon Valley and Southern California are two prominent regions in the United States known for their vibrant startup ecosystems and venture capital (VC) investment activity. While both regions have a strong focus on technology and innovation, there are some differences in the investment landscape and investment philosophies of VC investors in these areas.

Silicon Valley, located in the San Francisco Bay Area, is widely recognized as the global epicenter of technology and entrepreneurship. It is home to numerous tech giants, prestigious universities, and a dense network of startups and investors. Silicon Valley VC investors have a long history of funding successful tech companies and have developed a wealth of experience and expertise in the sector. They often have access to substantial capital and are well-connected to industry leaders, which can be advantageous for entrepreneurs seeking funding and strategic partnerships. Silicon Valley investors tend to have a higher risk appetite and are more inclined to invest in early-stage, high-growth potential startups, particularly in sectors such as software, internet, and biotechnology.

Southern California, on the other hand, has its own thriving startup ecosystem centered around areas like Los Angeles, San Diego, and Orange County. While it may not have the same concentration of tech giants as Silicon Valley, Southern California boasts a diverse range of industries, including entertainment, aerospace, biotech, and healthcare. As a result, VC investors in this region often have a broader investment focus, targeting startups in sectors beyond traditional technology. Southern California investors may place emphasis on consumer products, media, entertainment, and lifestyle-oriented businesses. This regional specialization can provide unique opportunities for entrepreneurs operating outside the traditional tech sphere.

Additionally, the cultural differences between Silicon Valley and Southern California can influence the investment landscape. Silicon Valley is known for its fast-paced, competitive, and ambitious culture, with a strong emphasis on disrupting industries and achieving rapid growth. In contrast, Southern California has a more laid-back, lifestyle-oriented culture, which can influence the investment approach and priorities of VC investors in the region.

However, it is essential to note that these distinctions are not absolute, and there is some overlap and collaboration between investors in Silicon Valley and Southern California. Many VC firms have offices or investment interests in both regions, recognizing the strengths and opportunities each area offers.

While Silicon Valley and Southern California are both significant players in the VC industry, there are some differences in investment focus, industry specialization, and cultural nuances between the two regions. Understanding these distinctions can be valuable for entrepreneurs seeking funding and navigating the respective ecosystems. Ultimately, the choice of VC investors depends on the specific needs and alignment of a startup with their investment thesis, expertise, and industry focus.

Successful Angel Investments Have These Top Elements

Angel investing in startups is probably the most challenging form of investing there is. Having been involved with the Tech Coast Angels for the last 10 years I have seen 150+ companies funded and very few successes. One thing I have learned over that time is that about 90% of the investors in each company "didn't know what they didn't know". Why? Unless you are a full-time investor looking at business plans all day long or have some particular domain expertise, angel investing will turn into a charitable tax exercise for you. 

Successful angel investments usually had these top 10 elements going for them:

1. Investors had to earn their right to be part of the investor syndicate and invest
2. Investor syndicates typically had less than 5 investors investing $50K-$250K each
3. The investor syndicate only had domain experts in the deal
4. All investors contributed contacts, industry knowledge, or competitive intelligence
5. The investment was sourced through contacts and NOT blindly through random submissions
6. Sophisticated angels (like VCs) had looked at many other competitors from around the U.S.
7. The valuation was never an issue in negotiations and was understood by both parties
8. The market was in a recession and lacked institutional Venture Capital competition
9. The management team had worked on previous start-up successes and failures
10. The company had bootstrapped itself into a beta product and had to pay customers

Many angel investors may lack awareness or understanding of certain aspects of the investment landscape or specific industries. While it is true that angel investors, like any other group of individuals, may have knowledge gaps or areas of limited expertise, it's important to note that angel investors can bring valuable insights and experience to early-stage investments. Here are a few points to consider:

Diverse Backgrounds: Angel investors come from various professional backgrounds and industries. While they may not be experts in every domain, their diverse experiences can provide unique perspectives and insights. They often bring expertise from their own industries or successful entrepreneurial ventures, which can be valuable in evaluating startups.

Learning and Continuous Improvement: Angel investors, like any investor, should strive to continually learn and expand their knowledge base. Successful angel investors recognize the importance of staying informed about industry trends, market dynamics, and emerging technologies. They often engage in networking, attend industry events, and seek advice from mentors and experts to enhance their understanding.

Collaborative Approach: Angel investors often collaborate with other investors and industry experts during due diligence and investment decision-making processes. This collaboration allows them to leverage the collective knowledge and expertise of a group, mitigating individual knowledge gaps and increasing the chances of making informed investment decisions.

Subject Matter Experts: While angel investors may not be experts in every area, they often seek advice from professionals, mentors, or industry experts who possess specialized knowledge. They may bring on board advisors or consultants with expertise in specific industries or technologies to complement their own skills and enhance their investment decisions.

Learning from Failures and Successes: Angel investors gain insights through their past experiences, both successes and failures. By reflecting on their investment track record, they can learn valuable lessons and refine their investment strategies. This iterative learning process helps angel investors become more knowledgeable and informed over time.

It's important to recognize that while angel investors may not know everything, their participation in early-stage investments brings valuable financial resources, industry experience, and networks to startups. The key is for angel investors to be open to learning, seek expertise where needed, and engage in continuous improvement to make informed investment decisions. Similarly, entrepreneurs should actively seek out angel investors who align with their industry and domain expertise to receive the most value and support.

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Cloud Computing Lowering Startup Barriers To Entry

Cloud computing has indeed lowered the barriers to entry for startups in various ways. Here are some key ways in which cloud computing has had a positive impact on startup ecosystems:

Great Web Services Need Great Distribution

Great web services indeed require effective distribution to reach and engage a wide user base. Distribution plays a crucial role in maximizing the visibility, adoption, and success of web services. Here are some key factors to consider when it comes to distribution:

Direct vs. Automated Ad Network Sales Growth

Direct ad network sales and automated ad network sales (programmatic advertising) are two different approaches to selling and buying advertising inventory. Here's a comparison of the two:

Google Ad Manager Will Make Publishers More Money

Google Ad Manager is a comprehensive ad management platform that provides publishers with tools to monetize their digital content effectively. While using Google Ad Manager can potentially help publishers generate more revenue, several factors contribute to the overall financial success of publishers using the platform: