High-Stakes Game

The San Francisco Chronicle caught up with Larry Marcus at a conference on digital media organized by IBD Network. Here's an excerpt:

One thing that was abundantly clear Tuesday: It's going to be crowded. Many companies are working on very similar ventures, whether it's podcasting, online music, communities, video or mobile applications.

"There's some real over-funding that's going on in a lot of spaces," said Larry Marcus, managing director of Walden VC, a San Francisco venture capital firm. He cited online video editing, social networking and blogging.

But at the same time, Marcus said, "The stakes seem as big as they ever seemed for Web companies. The opportunity to have a major impact is clear. It's more obvious that there will be a lot of value creation this time, because of the companies that made it in the first big wave of the Web. There are also more players from established companies and industries who realize the Web is an imperative."