Interesting if somewhat random thoughts from Fred Wilson. This stuck in my head:
4) For almost twenty years, I mostly avoided the 'developers tools' sector. I always thought developers were too small a market to allow for the creation of large businesses. Of course there are exceptions to this rule. But in the past few years, I've started to look for investments that have developers as a core constituency. Services like Twitter and Boxee are succeeding because developers want to write for these platforms. These are not developer tools for sure, but success requires significant third party developer adoption. The role of viral adoption by consumers is well understood in web marketing but I don't think we've yet really wrapped our heads around the role of developer adoption and how powerful it is in ramping consumer web services.
Thoughts from 25,000 feetP.S. Blogger/Firefox has terrible spell checking, missing both "ramping" and "blockquote". Me spelling better than the machines has become a pet peeve of mine recently.