Israel Venture Capital 2.0

iPhone 2.0 – People standing in line

I just got into the office after a meeting in downtown Palo Alto. As I was driving down University Avenue, I could see the very long line outside the Apple Store. People have been waiting here for hours (days?).  The lines were at least 2 blocks long, with a lot of TV, media, etc. I tried to capture the event with my blackberry (sorry, no iPhone), so check out the picture below.

The long line for the iPhone reminded me of the long lines outside the Cellcom stores back in 1994. Cellcom is the largest Israeli mobile operator, and when they launched in 1994, people stood in lines for hours just to get a phone. Back then, it was crucial – after all, Cellcom was the first to offer an affordable mobile phone package. For most people, it was the first time they could enjoy the cellular experience (BTW – I got my first mobile phone in 2000…). You can read more about it on the Hebrew version of Wikipedia (Sorry, No English).

The long line for the iPhone also reminded me of the long lines outside the movie theaters before the first screening of the "Return of the Jedi" on June 6^th, 1983 (exactly 25+ years ago). The buzz around the Star Wars trilogy was high, and people couldn't wait to see the final chapter. It was the first time I ever saw people setting up tents in front of a movie theater.

I am a big believer that the iPhone is a breakthrough. It's a platform that is really going to change the world of mobile internet. However, the 1^st cell phone application (voice…) had a bigger (and immediate) impact on the consumer. In other words, I think the buzz (Jedi like) is the biggest driver behind this demand, much more than pure need (Cellcom). As an investor, I do hope that one day I will invest in a company that will launch a product so great, that it will make people stand in line for a full day just to get access to it.

Very Short List

Are you familiar with Very Short List? If you are, you can stop reading here. If not, check it out. I personally think it's one of the best online services out there.

The idea is simple – a daily email with a single recommendation on something cultural. It can be a good book, a great movie, a DVD to buy, or maybe a short clip on You Tube. Some recommendations are for free stuff, and some are for stuff you need to buy. Overall, it's a very simple service that has opened my eyes to great things. Some examples include the great commercial for Bravia, the adapted do-it-yourself music video of Bob Dylan, The emotional British advert for Lloyd TSB, and most recently a great review on the amazing Mad Men DVD.

In my opinion, VSL such is a great service because it manages to combine a few great things:

1. Great content - their editors know what to pick and recommend.
2. Easy to consume - A single email a day, with ONE recommendation only. Never more.
3. Somewhat Interactive - Responsive to its consumers (Every month, you get an email with the 3 most favorite recommendations as were "clicked" by the crowd).

I wish there were other similar services that will provide the same value but in other disciplines. Maybe Digg is moving to that direction with their new upcoming recommendations, and Outbrain (A Gemini Portfolio Company) is definitely providing similar values with a different service. As a consumer, I am hoping someone will come out with VSL for world events - a single email (every day) with a summary of the best (Doesn't have to be the most important) global story of the day. I personally raise my hand for that.

Bill Gates – Goodbye from Israel

Last Friday was a big day for the Software Industry. Bill Gates stepped down from his active role at Microsoft. Everyone across the internet wrote about it (Random choices include More Ramblings, Wally Bock, Engadget and my favorite at Venture beat). Like always, I tried to take the Israeli view.

What is the Israeli view? On one hand, Bill Gates and Microsoft were early supporters of Israel, opening up Microsoft R&D Center almost 20 years ago (1991), a few years before the local industry really took off. However, Bill visited Israel only once and that happened recently (October, 2005). He was in Israel for no more than 24 hours, although he did give a lot of positive press, constantly talking about the strong commitment of Microsoft to Israel. (Check reviews of that visit in the Jerusalem Post and in Globes). 24 Hours over the past 30+ years of Microsoft? Clearly Israel was not high on Bill's agenda.

With that in mind, here is a different view on the topic. Who is the Israeli comparable of Bill Gates? Who is the most influential CEO/Entrepreneur in the local Israeli Software industry? Someone that really had a major influence on the local industry as well as the global high-tech. I put some names together in a short poll below. The winner (?) gets a free ride with Bill Gates on his next trip to Israel.