Nice post from Dave Cowan...
Link: Who Has Time For This?: Consumer Investing (2).
That's why we believe that the formula for any successful consumer venture is to be as scrappy as possible until you see that exponential growth curve. Twist, tweak and test until you find the mark. Only then is it time to raise lots of money, hire expensive VP's, and "monetize" your users. (Be sure to read this excellent post from Brad Feld on finding the next killer app.) If Google taught the world anything, it's that you start with the customer experience, and then build the business only after you've got that one nailed.