NEWS

The $100 million giveaway

Business 2.0
August 23 2006
By Michael V. Copeland

Asking venture capitalists for great startup ideas is a little like asking Curt Schilling what pitch he's going to throw next. When we posed the question to dozens of VCs and investors around the country, more than a few indignantly shot back, "Are you out of your mind?"

But after some friendly prodding from our reporters, a surprising number of them couldn't help but start jawing about companies they would love to build - if only the right people could be found to perfect the technologies or the business plans and make them seem possible.

The result is this list of 20 tantalizing business ideas, ranging from a host of new websites and applications to next-generation power sources and a luxury housing development.

This isn't small-time thinking, either: These investors - which include some of Silicon Valley's most successful VCs as well as serial entrepreneurs like Steve Case and Howard Schultz are backing their ideas with a collective $100 million in funding to the entrepreneurs who can get them off the ground.

We don't guarantee you'll land a multimillion-dollar payday or even get your foot in the door. But with the ideas now in your hands, consider yourself halfway there.

The Next Massively Entertaining Idea

The Investor: Bill Gurley, general partner, Benchmark Capital

What he's backed: Linden Lab, Shopping.com, Zillow.com

What he wants now: The next massively multiplayer online hit, whether it's built around a core game like World of Warcraft or a virtual community like Neopets. "Anything," Gurley says, "where people are entertained massively together." Benchmark has placed some big bets in the MMO sector, including Linden Lab, maker of Second Life, and Sulake, which runs Habbo Hotel, a game site geared for teens. "I think we're far from finished in this space," Gurley says. "There is a lot of room for new ideas going after different areas of interest."

Gurley will not hazard a guess on what demographic could be ripe for the next MMO hit. "These things are like catching lightning in a bottle," he says. "There's an element of game design and social curiosity that you have to get just right."

What he'll invest: $5 million for a working game or site that shows MMO growth potential. "It's so hard to predict what will take off," Gurley says, "that it's easier to pay more for something that's further along."