Henry Oliver asks:
In what ways are writers and entrepreneurs similar? Why doesn’t publishing have more of a VC structure and attitude? Could authorship be made more productive and better quality with VC in publishing and theatre? Are movies better at this?
Publishing has one feature in common with venture capital, namely that most financed undertakings are failures and the most profitable successes can be hard to predict in advance. Furthermore, publishers are always on the lookout for the soon-to-be-hot, hitherto unpublished author, the next Mark Zuckerberg so to speak. And books, like software and also successful social networks, are rapidly scalable. You can sell millions with a big hit. But here are a few differences:
1. A lot of VC is person-focused. The VC company builds a relationship with a young talent, and in some cases the hope is that the second or third business makes it, or that the person can be steered in the proper direction early on. Authors, in contrast, are more mobile across publishers, and the publisher usually is buying “a book” rather than “a relationship with the author.” Some wags would say that a publisher is buying a title, a cover, and the author’s social media presence.
2. Entrepreneurs commonly have more than one VC, but authors, for a single book, do not have multiple publishers.
3. For the vast majority of books which do not make a profit, this is evident within the first three weeks of release or perhaps before release altogether. The publisher may drop its resource commitment to the author very quickly, and even yank the PR people off the case. This further loosens the bond between the talent (the author) and the funders of the talent (the publisher). In contrast, VC rounds can last five or ten years, with commitments made in advance and possibly a board seat as part of the deal.
4. Venture capitalists will introduce their entrepreneurs to an entire network of supporting talent and connections. Publishers will edit and advise on a manuscript, but it is much more of an arm’s length relationship, and a publisher might do very little to bring an author into any kind of network.
5. The major publishing houses are clustered in Manhattan, just as the major venture capitalist firms are clustered in the Bay Area. But the publishers don’t find a pressing need to have their authors living in or near NYC, though for some other reasons that is convenient for the author doing eventual media appearances.
6. Publishers often care a great deal about an author’s preexisting platforms, such as Twitter followers or ability to get on NPR. Venture capitalists realize that a very good product can overcome the lack of initial renown. When Page and Brin started Google, they didn’t, believe it or not, have any Twitter followers at all. In fact, you couldn’t even Google them.