The real value of iFund

The real value of iFund

An anonymous commenter suggested I'm a bit overenthusiastic about iFund (http://www.kpcb.com/initiatives/ifund/index.html), the venture capital fund set up for iPhone application developers. So I thought I'd spell out what makes this move so significant.

First, I should mention I sat in on an attempt to get venture capital. After Fandom (http://www.updata.com/interior_advisorstransactions.asp?newsid=130) fell apart, two of my bosses sought to bring our part of the company back from the ashes. They assembled a team to run the company, myself included, and we met with an investor. The meeting went well, though ultimately not as we'd hoped.

One obstacle was the investor's lack of familiarity with any element of our business. We had to explain the product, how we get it, how we sell it, etc., etc., which took time away from the real pitch.

By contrast, the people running the iFund won't need an explanation of the platform, distribution, or pricing schedule. Developers won't have to spend time on that stuff and can focus instead on explaining what makes their application a worthwhile investment.

Another thing I learned is that finding an investor isn't easy. Finding one interested in your type of product or service is even harder. Apple has eliminated that legwork by introducing a dedicated fund. There's no guarantee they'll invest in you, but at least you know how to find them and that they're interested in, not just familiar with, iPhone software.

In the end, the iFund is just another resource. What sets it apart is that people know about it and what it's for. This awareness will attract developers and other investors. This in turn will put more content on the device, and (here's my mantra) content drives sales.
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