``Basically, everyone I know is involved in five or six projects right now,'' said Scott Rafer, 38, former CEO of the search engine Feedster and now CEO of blog tracker MyBloglog.com, co-founder of Mashery.com, a stealth-mode company aiming to help Web developers, and chairman of WiFinder.com, a WiFi hotspot directory. ``VCs spread their risk across numerous companies,'' said Rafer. ``Why shouldn't we?''
George Zachary, a venture capitalist at Charles River Ventures on Sand Hill Road, compared the climate to Hollywood. ``It's like how multiple people get involved in multiple movie projects as insurance. Entrepreneurs are responding to the hits-driven nature of the industry, where only a few big acquisitions are happening every year.''
... Indeed, most observers agree that a committed business partner is critical to make running more than one company work. ``The entrepreneurs I've studied have found partners who complement the entrepreneur very nicely and who devote fuller attention to an individual venture,'' said Noam Wasserman, an assistant professor at Harvard Business School.