SAI contributor Howard Lindzon is a Phoenix-based venture capitalist and entrepreneur. He has run a hedge fund for 11 years and is a partner in Biltmore Ventures. Recently, he founded Wallstrip, which was purchased by CBS in June. He blogs at howardlindzon.com. Here, he explains why he joined the Facebook App craze, with a small investment in BuddyMedia.
Lord knows that the tech blogosphere is at Defcon 1 for noise on Facebook and the Application Emancipation. Call me Mr. Bubble Boy for staking a claim with my investment in BuddyMedia.
Why am I doing this? After all, I think the Internet market is peaking, and I was burned a little in the one and only real bubble of 2000 (anyone want my Carsdirect shares?..Carsdirect?.. anybody?..Bueller?..). Here’s why:
First off, now I have another excuse to be in New York.
Second, I believe in Facebook as a long term platform. The internet is about information and we are at the tip of the iceberg. Facebook may be overhyped, overvalued and over ‘appd’ at the moment, but she is here to stay. It’s AOL, but evolved.
Third, I believe in private and social currencies. Affinity programs work. People are spending a bazillion hours on Facebook and should have a currency as a way to measure themselves and transact. I won’t be the richest guy in the world, but I could be the richest dude in Facebook money (fellow investor James Altucher is already ahead of me in both worlds).
Most importantly, as an angel investor, I truly believe in Mike Lazerow, who has had great success as an entrepreneur and has the necessary passion for starting successful companies. Things go wrong at start-ups and you need strong leadership. (It also never hurts to have a great investment team, advisors and board that have deals lined up the wazoo.)
Mike explains best what BuddyMedia’s AceBucks is and isn’t if you want to learn more. PS – BuddyMedia is looking for a BIZ DEV person in New York!