“You’re an idiot if you don’t start an Internet company right now”

The following comes from my friend James Altucher’s latest TheStreet.com Internet Review (subscribers-only) newsletter. He quotes a highly successful non-Internet entrepreneur friend recently saying to him as follows:

“You’re an idiot if you don’t start an Internet company right now.”

James is a smart guy, so while this is truly a froth-inducing quote for the bubble-spotters out there, take it in the spirit James almost certainly intends it. He points to both cyclical (Internet stocks) and secular (declining cost of code, ad boom, etc.) factors in the markets right now that favor more successful Internet-centric models and companies emerging.

While it’s easy to scoff, keep in mind that James, in addition to being smart, has been around the Internet, venture capital, and entrepreneural block for more than a decade. He realizes, like many techies don’t, that some seemingly irrational expansions go on much longer than cynical and weary insiders think. He also realizes that there is a difference between a great business and a great investment. at least in the short run.

[obDisclaimer: I write a weekly Saturday column for TheStreet.com]


  1. Franklin Stubbs says:

    This comes across as a cynical short-term view of a powerful long-term trend. The opportunities for internet companies now are great, and they will continue to get better and better.
    The big trends we are seeing distinctly favor the entrepreneurial knowledge worker imho. As technology costs fall and general web savviness rises, the virtual business model looks more and more compelling.
    But the flip-side of rising web savviness and tech awareness is that it’s also getting harder and harder to bullshit people. An internet model might be the road to the promised land, but you actually have to have quality content in order to realize long term gains.
    This is a great thing and a sign that the system is working. It’s simultaneously getting easier to monetize genuine quality, and harder to put lipstick on a pig.