Web entrepreneur urges start-ups to value connections

Community and connections and not content or cash is the key to a successful Internet start up according to Guy Kawasaki, CEO at dot-com incubator Garage.com.

Kawasaki was addressing delegates at the UpStart Europe conference in Disneyland Paris.

He added it was more important to gain valuable investors than cold cash. "Valuable money is money with connections. Don't go to Uncle Joe for cash as he won't have the same connections as a VC," he said.

Kawasaki added that being first was more important than being good. "Don't worry, be crappy. Version 1.0 means never having to say you are sorry. It's OK to ship crap so long as it's revolutionary. If you wait until it is perfect then you will have waited too long. Ship then test," he said.

He added that without a community there is no base to build up your business and advised entrepreneurs to "eat like a bird and poop like an elephant".

"Read voraciously, press flesh with the customers and when you have taken in all the information poop it all out. Spread it around your company and even among your competitors because you need to create an audience," he said.

Also speaking at the conference, Pierre Omnidyar, CEO at eBay warned would-be Web entrepreneurs about ploughing all their investment into advertising. "Build a community of evangelists first. Heavy spending on ads can give you brand awareness but it does not increase sales.

"You have to build a community from the grass roots. This is the most difficult thing to do, as most marketing directors would rather write a cheque for a large campaign and then sit back and wait for the customers to come in. But doing this does not equate to a vibrant community or active economy," he said.