This month’s Forbes magazine profiled Michael Moritz, the ranking partner at Sequoia Capital responsible for such investing in Google, Plaxo, RedEnvelope, Zappos and others.
Ironically, the maven in consumer-tech businesses is now sour on consumer-tech businesses. He says they are a pit of “muck and mire.” He continues, “Most of the venture money going into consumer-related companies will be squandered, and the rest will be lost. It will be brutal.”
That’s not surprising. Customers are overwhelmed with choice and information. A search for “stapler” in Froogle brings up 25,000 results. And it’s not just the breadth of products that’s daunting, but breadth of shopping portals and Web destinations. The explosive growth of affiliate industry means there are a lot of portals our there.
Perhaps that is why 56% of customers start their shopping with a online retail brand they trust (BizRate study).