When is a tech investment prePosterous?

PosterousWith all the technology that pops up between Techcrunch, Mashable, Twitter, and the other frequencies in the deluge of data that comes across my screen, I usually wait for something to show up a few times before I consider fiddling with it.

Tonight I started noodling with Posterous. I’ve seen a few people adopt it and I thought I’d have a look. It’s a nice idea –  the big feature being that I can post to Posterous by emailing and also synch those posts to all my digital assets (which seem to have accumulated quickly). Cool right?

So I hooked it up easily enough. It’s a nice U.I. They did a good job with it.

Anyhow, shortly after testing Posterous’ upload with my other outposts I started looking around my WordPress admin panel for this blog and guess what I found? WordPress allows me to update by email. So, while it doesn’t allow some of the synching, I can enjoy the main feature (ironically not being used as I type this) without having to add yet another site and invest yet more time toward my list of maintainable digital assets (which as I’ve noted in the past, has a downside).

But my personal qualms aside, the point here is simple: Short of a killer patent (and even that’s not a sure thing) any technological point of difference a company has is going to be copied, and possibly improved upon, very quickly by someone else. This is especially true of technologies that enhance platforms that are already well established (like Posterous to blogs).

There’s also the chance that the technology, without a reasoned business strategy, might turn out to be an enabling technology (like, say, email or IM) that gains huge use but make no one any money.

So while that company might get funded and even grab a lot of headlines, without the ‘monetization’ built in from the start (and ‘ad revenue’ doesn’t count anymore) that business plan is overvalued if its being valued at all.

We don’t need to go through the household names in the tech sector that are both well known and also well known for not making any money. Big corporations with the resources for deep due diligence have bought some of these and watched them show up as redlines in their annual reports – for years.There’s a long history of irrational exuberence when it comes to investing in ‘innovative technologies’ where the ‘money making part will be figured later’ (i.e. is not in the business plan).

It may be a business trend (or even in some instances a perverted selfish business model from the founders’ standpoints) to get investors to continually pump cash into these tech businesses in the hopes that they make money. But if your technology becomes the next email, or IM, you’ve not done any service to your investors.

I realize sweating the money side bucks the ‘change the world one data packet at a time’ ethos of the new digital world order, but the bottom line is, without proper funding ideas remain ideas and no one benefits. The big money is the catalyst to the big changes.