Before I get into it, I wanted to share this article from Bill Gurley, venture capitalist at Benchmark Capital titled ‘Money Out of Nowhere: How Internet Marketplaces Unlock Economic Wealth‘. What a run he has had with Benchmark and what a time to be a marketplace investor. Bill talks about the internets impact:
Fortunately, the rise of the Internet, and specifically Internet marketplace models, act as accelerants to the productivity benefits of the division of labour AND comparative advantage by reducing information asymmetry and increasing the likelihood of a perfect match with regard to the exchange of goods or services. In his 2005 book, The World Is Flat, Thomas Friedman recognizes that the Internet has the ability to create a “level playing field” for all participants, and one where geographic distances become less relevant. The core reason that Internet marketplaces are so powerful is because in connecting economic traders that would otherwise not be connected, they unlock economic wealth that otherwise would not exist. In other words, they literally create “money out of nowhere.”
Make sure you have a read of the full piece as it will help explain the continued success of these venture backed companies in the public markets.
Back to my day…
I read the article this morning while waiting for my friends on the driving range at Silverleaf.
My friend Brad set up a round for a few friends visiting from Chicago yesterday in North Scottsdale. It is one of my favorite golf places to spend a day. The weather was perfect so I headed up early to put in some time on the range. They have an immaculate practice facility.
I ended up practicing next to Roger Clemens. I did not want make some inappropriate ‘juice’ reference so I waited for a picture like I was the executive producing ‘Wild Kingdom’. I did get my man!…
My friend Jack did catch one of my better shots of the day…a 7 iron from 157 on 16.
I earned the nickname ‘America’s Best 10 handicap’ from Jack, which I think I will use for future money matches.
Here is Jack playing the tips on that same hole (237 yards) where he flew a 2 iron over the green. Real golf!
Ellen and I are off to Coronado for the week with the kids for Spring Break. I can’t wait.