Log on. Drop out. Get rich.
Today's business school mantra is a far cry from the '60s' "Tune in, Turn on, Drop out." Today's college dropouts are stimulated by a different high. The kind that comes from a successful IPO.
We can learn a lot from the wet-behind-the-ears Internet wunderkinds who quit school to get rich. What drives them? Who's incubating their ideas? Where is the money coming from?
WHO'S THAT KID IN THE BOSS'S OFFICE?
The Net generation is launching startups in between finals, raising money in late-night conference calls, skipping class to meet with customers. Some of them you've heard about:
Napster creator Shawn Fanning is turning the music industry upside down. He came up with his software during his days at Northeastern University. He says it came from frustration with existing digital music sources -- and a desire to create a music community. Click for more.
BigWords CEO Matt Johnson dropped out of college to peddle textbooks online. According to PC Data, he's making the grade: In January bigwords.com was No. 1 among textbook sites with 2 million unique visitors. That's No. 3 among all book e-tailers (behind Amazon.com and Barnes & Noble). Click for more.
HOW DO THEY HATCH THOSE IDEAS?
The greatest idea is worthless if you can't make it happen. That's where incubators come in. In return for a stake in the company, incubators nurture startups. For instance:
Idealab is the granddaddy of Internet incubators. Chairman Bill Gross has helped launch 20 Internet startups. And he told a Jupiter forum earlier this month there are still plenty of opportunities. Click for more.
Divine Interventures represents a new breed of incubators. Andrew Filipowsk, former CEO of Platinum Technologies, is building what Red Herring calls the Great Mall of Incubators -- everything an entrepreneur could want in services and support, under one roof. Click for more.
High-tech companies are big believers in the incubator idea. In fact, Sun Microsystems just announced a program to help startups … and was roasted for being so late to the party. Click for more.
Post incubators are the latest twist. Both Andersen Consulting and KPMG announced post-incubator ideas last month. They'll support maturing dot-coms that have secured initial financing and show strong business potential, in return for equity. Click for more.
SHOW ME THE MONEY
Services and support are one thing. A big fat check to get things going is another. I told you last month how everyone with $75 in their pocket is jumping on the VC bandwagon. Click for more. Here are resources to help you tap into it:
Angel investors are individuals who assist with early-stage investments, typically under $10 million. Learn more at:
Venture capitalists tend to be firms with large pools of money and a formal protocol for dispensing it. Learn more at:
What do you think of all these young entrepreneurs getting rich before the rest of us? Use the TalkBack button to send me comments, or jump to my Berst Alerts forum.
You know, man. This is all pretty inspiring. Pass that doobie and we'll come up with some great ideas. In a while…
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