This August, David Sacks made a post on Facebook which caused some stir in the venture capital community.
I think silicon valley as we know it may be coming to an end. In order to create a successful new company, you have to find an idea that (1) has escaped the attention of major Internet companies, which are better run than ever before; (2) is capable of being launched and proven out for ~$5M, the typical seed plus series A investment; and (3) is protectable from the onslaught of those big companies once they figure out what you’re onto. How many ideas like that are left?
This blog post addresses Sacks’ three points:
- The vast majority of tech companies are focused on creating cool new products – ‘killer apps’. No issue there, but the problem which has resulted is that there is, (a) a deluge of apps/services on the web that don’t communicate with one another; and (b) there is a massive disarray of data generated by these technologies. Noospheer recognizes that in order for the web to make its next leap of usability, data from disparate sources must be fully integrated and apps should tie into one another far more easily. We address the deep challenges associated with these problems from an entirely new angle: classical-quantum computing (performing quantum operations by efficiently utilizing commodity hardware). Our project argues that this is an approach which has ‘escaped the attention of major Internet companies’. — As an additional point, the revenue generation potential associated with a data integration platform is enormous. As yet, there is no eBay of data. See the model.
- Our ask is $1.4m CAD. Including the seed we raised previously, we can prove out the design for less than a third of Sacks’ magic number.
- Being built on top of battle-tested open source parts, the software is fully protected by the open source paradigm. For an argument in favor of open source from a business perspective, see this.
The search for venture capital has taken this project around the world — North America, Europe and Asia. As yet, we have met resistance and continually refine our tactics. We seek investor(s) willing to take relatively small risk on a solid team for major reward.