A couple VC Gems

I have a few of the better (I think they are, anyway) VC blogs on my feed reader, and just recently did some catching up.

A few snippets caught my eye:

1. Ben Horowitz, on "How we picked our first cloud investment" makes this point:

...the first attempts to build applications in the cloud from companies such as Corio simply fork-lifted the leading on premise software and moved it into the hosted environment. While this sounded like a good idea to many VCs at the time, it turned out to miss important details and advantages of the cloud...

Reading this should spin your gears if you are thinking lately about OnLive, Gaikai et al. (And thinking about it further, you might see why I was saying early on that MMOs are a really good customer for these services - Already architected for the cloud, just the network stack sits at a different point in the pipeline). Regardless, key point is that content that is ported is always second-rate compared to content authored from the outset for a platform.

2. Lightspeed Venture Partners has this post (2 months old now) estimating Zynga revenue at ~240M for 2010, down slightly from 2009.

a) It's a fairly thorough model, and they have the spreadsheet shared on google docs if you want to tinker with it.

b) The graph of Zynga's revenue over time sure made me think of Dave Edery's inevitable misery pitch.

Anyhow, something to noodle on.