Suddenly the VC/entrepreneur meme for Q1-2011 is "The Quora for X." Here are two examples from the past few days:
- Google Ventures Leads $600K Investment In LawPivot, A Quora For Startup Legal Advice
- Hipster Is Quora Plus Location — Or Q&A For Where You Are
Lest you think this is a TechCrunch phenomenon, I've received a half dozen emails in the last week pitching companies as "Quora for X" or some derivative of this (often "The Quora for X"). Of course, Joshua Schachter very cleverly suggested last night via Twitter that we create the "Quora for XXX". Given the presence of PornoTube and YouPorn in our universe, I expect some clever porn purveyor will quickly figure this one out.
This meme goes around regularly. Here are a few built off of success cases (which bodes well for Quora if you view meme development as a leading indicator of success. "The Youtube for X", "The Facebook for X", "The MySpace for X" (oops), "The Google for X", "The Twitter for X", "The LinkedIn for X", "The Groupon for X", "The FourSquare for X", and "The Zynga for X."
You'll probably infer that "X" in each case is a specific (often tightly defined) vertical market. Each of the companies listed above are arguably several of the very few companies that have actually established enough critical mass of users to declare themselves a true platform. The "X's" presume that specialization in a vertical market will result in unique functionality that the general platform can't create.
Ironically, this thought process runs directly counter to another massively overused entrepreneurial meme — "I'm creating a platform for X." Think about it for a sec — are you creating a derivative of a platform that is vertically focused or is the vertically focused derivative of a platform that you are creating going to also be a platform?
Now, step back and think about how many huge companies have been created using "The BigSuccessfulStartupNowPlatform for X" approach? While modest companies emerge out of this (and there's nothing wrong with that), there aren't very many really significant companies that emerge. The platforms — if they are real platforms — usually either extend into the vertical segments nicely or quickly acquire "The BSSNP for X".
As an investor, I'm not really interested in any of the verticals that are derivatives of platforms. Other than a few specific cases, where we actually believe a platform company can be created, we stay away from vertical markets. And often, the driver of the decision is the entrepreneur and his obsession with and experience in the particular vertical market in question.
I expect that we'll see many "Quora's for X" get created and talked about in the next quarter. If I was an investor in Quora, I'd be encouraging the team to be focused on expanding quickly into every vertical that appears which seems like it would be easy given their existing infrastructure. And if I was an entrepreneur, I'd already be looking past "The Quora for X" meme for what's going to be next.
Reprinted from Feld Thoughts
Brad Feld is a managing director at Foundry Group who lives in Boulder, Colorado. He invests in software and Internet companies around the U.S., runs marathons, and reads a lot. Follow him at twitter.com/bfeld.