In his blog earlier this week, Cuban announced a concept he called “open source funding.” The idea, aside from investment stimulus for businesses, is the sharing of lean and profitable business plans. The only way one can hope to qualify for investment is to meet all of Mr. Cuban’s criteria, including posting your business plan publicly for review.

Of course, there are some dissenters who complain about the criteria but hey, when you’re giving away money, you have to make some rules. There’s also the general ruckus about stealing ideas but that’s also part of the reason for the public posting – “sharing” ideas. If someone else has the means to start a business using your idea, that’s another new business start-up. The idea is to get more Americans into business.

However, a by-product of this open air discussion and sharing of ideas on the internet is the dozens of other potential investors jumping into the arena, posting on the blog, offering additional backing, and taking notice of the flow of ideas. Whether it’s for the chance to do business with the Dallas Maverick’s owner, or the for a share of the spotlight, the end result is that the gauntlet has been thrown for these big money moguls to re-invest in American know-how.

It’s time to check your patents and dust off your spreadsheet.

Our award is largely in part to Lisa Lloyd, who gave a fantastic elevator pitch to a crowd of 300 at Rice University, in Houston, TX.

Not to put all the spotlight on ourselves, several other innovative companies also walked away with the award. Notable standouts were opmom.com, a social networking website that connects and organizes Moms. Another good presenter was podcastready.com, a service that simplifies creating, listening, and subscribing to podcasts. Typically Apple has dominated this space, but podcastready is hoping to simplify the podcast process even further.

The headline speaker was Jeff Henley, Chairman of Oracle. Here are some notes from the talk (we’ll have an audio link up here tomorrow).

• Worked with successful entrepreneurs i.e. Larry Ellison
• Oracle has $5B cash flow
• Larry didn’t want to dilute, wanted control
• Software can do it with little capital.

Steps for successful startup
-Need a good idea
-Need smart people, don’t forget to look overseas
-Work hard & fast

• Google monetized existing technology
• Bill Gates bought IP
• Larry Ellison borrowed (legally) ideas
• Oracle wants niches or way to scale up
• No VC Oracle fund anymore

Here are some other semi-legible notes from speakers, presenters, and the Venture Capitalist feedback panel. We’ll have audio files & photos posted here in a few days.

New Venture Presentations worth noting:
Tritaur, creators of Opmom.com
Social networking site that help moms interact, communicate, & organize their day. Helps brands get word of mouth awareness. The rest of the info can be pulled from the program.

PodcastReady – great speaker, already have VC money
Player that integrates & makes podcasting easier.

Whiteboard Labs
Created MotionNotes, kind of widget that allows user to attach a personal message to a video or widget. Say you have a youtube video of you doing something stupid. You could preface the video with a motion note that says “don’t try this at home” or “I was drunk”.

VC Feedback panel to New Venture Presentations – see program for panel members
OpMom
How get users? – Oprah, book club
Get online advertising guru
Get 75-100k users before going to VC
Need to figure out how generate big audience with little $.
Risk types – market risk, technology risk, execution risk. Mitigate those.

PodcastReady
How get user adoption?
Go for mass consumers or enterprise users?

Whiteboard
Focus on consumers or enterprise?
What’s the product roadmap for future products
How to integrate into ecosystems – facebook, shutterfly, flikr
Use focus groups for user interface improvement, huge issue since going up against apple

Cool elevator pitch companiest:
IdeaTango OF COURSE!!
Fluid innovation – site that helps big companies license their patents
m@keido – sync your cell phone data
openteams – my buddy Tory Gattis, wiki-like software to make big companies more entrepreneurial
Qtags – keyword-based text messaging programs
Sk*rt – women’s site for what’s cool
Tipdish – connecting advertisers & PR w/ social media influencers
Youdesignit kinda like threadless.com

Afternoon Keynote speaker from DataCert. DataCert is an IT solution that helps companies reduce, track, & analyze legal expenditures. Read program for more info.
Started in .com boom
Bootstrapped because had to
Investors currently like vertical plays, didn’t like that in 90s.

Founder must
Articulate a message & communicate it
Build team
Convince everyone around him that the business will succeed

To get noticed, make noise in market.
Form partnerships w/ competitors.
Make a “good enough product” and then improve it.

Always takes longer than expected.
Turned down investors when previous investors would lose share value.
Watch out for strategic investor with “first offer and right of refusal” built into contract

Blair Garrou – DFJ Mercury, closing speaker
Likes capital efficient deals
Invested in Podcastready, unwired nation
Consumers want: personalized info, stay in touch with others, entertainment
Merger & acquisition best exit strategy right now w/ IPO tough due to Sarbanes and Private Equity in the tubes from the last few months.
What’s hot: ad network tools & platforms, central communications, foreign knockoffs of youtube/myspace/etc
Facebook ecosystem big, but won’t last forever
Likes community in a box – i.e. Ning

Is Web 2.0 a fad?
Too much capital w/ too few good deals
How to monetize
100k users not much anymore
Adolescent fickleness

What is Web 2.0 about?
Communication, self expression, shared knowledge & opinion, honesty, not reinventing the wheel

Big 5 acquirers – AOL, Amazon, Ebay, Yahoo, Microsoft
Google in league of its own
Get 100k users before talking to VC

You can listen to some of the recordings on IdeaTango.com. For more information, check out the Houston Startup Blog at www.startuphouston.com.

Happy Startup-ing!

Bryan Daigle