I have little doubt that many of the big name SEO consultants and firms have noticed some phone calls (mostly from Silicon Valley) coming in from major (and minor) venture capital companies. These relationships are blossoming in part because of the great analytic value that an SEO can bring to bear on a given web space and on the incredible variety of knowledge (and variety of relationships) that SEOs are building.
The venture capital world is an exciting space to be in, particularly on the consulting side, rather than the funding/invesment perspective. Consultants need to bring a lot of value to the table in order to maintain relationships, but the final responsibility for performance lies with the entrepreneurs and management team members (who both have to answer to the investors).
Paul Graham's rant from last year serves up a variety of negative attitudes that circle the VC world. Bob Crants, who I interviewed in January, has a good response. The negatives, to me, seem to be largely based in the control aspects of companies, while the positive is really the ability to grow a company at maximum speed.
Obviously, many folks feel that Web 2.0 is an overblown hype that will result in another burst bubble. Personally, I'm planning for that eventuality by diversifying our business model as much as possible, but, towards the bubble end (rather than the burst end), I feel it's important to accept the risks of startups and spend some time and effort contributing to the growth of companies that may or may not succeed in the long term. The early stages of a firm are where we can have the most impact and I feel that our recent focus on "linkbait" can get more buy-in from web savvy folks who are willing to take a chance on a service that isn't part of the standard consulting package.
One problem that I see corresponds to Danny's evisceration of the Web 2.0 phenomenon, which is that the exit strategy many of these firms are seeking is in the acquisition arena. My preference for any project that I personally invested in would be the possibility of an exit via buyout from the owners/operators once the capital flow is significant (or a public offering, but that's a very long shot). With so much opportunity for revenue online, a buyback option doesn't seem as remote as in the late-90's boom.
What are your thoughts about the mesh of these two worlds? Anything to be wary of? Excited about?
I could not agree with you more about the merging of these two worlds, it is inevitable. The idea of "linkbait" is huge. By sharing the results of your experiments into this space (Web 2.0 Awards), I think more people will begin to understand the power of "Web 2.0." in relation to SEO. I am happy that your are sharing, and look forward to seeing more!