Web 3.0: More Roll-Ups To Come

This week, ComVentures has gotten into trouble by trying to roll up several companies in its portfolio into one that is performing relatively well. If you missed this little soap opera, you can catch up here, here, and here.

Well, the truth is, we have seen a tremendous overfunding in the last year in the web 2.0 category, and in about 9-18 months, there will be some come-to-Jesus moments amongst investors on what to do with these deals. This moment, for some, has already arrived.

At that point, there will be many opportunities to bundle together multiple companies of this nature around some organizing principle that has a revenue-generating business model attached, rather than the “valuation-without-revenue” business model that has returned lately with gusto.

I wrote Web 3.0 = (4C + P + VS) this week. To make THIS Web 3.0 happen, roll-ups, in my view, are one of the best methods. However, since folding private companies into each other is a difficult negotiation game, it will not happen without some heartbreaks, a lot of finger-pointing, and plenty of angst.

Nonetheless, I strongly believe, that Web 3.0 Roll-ups are going to become a part of the strategy of many venture funds going forward.

This segment is a part in the series : Web 3.0