Could Vinny Lingham be SA`s Mark Shuttleworth of Web 2.0? HE WAS ONCE the only kid in his high school with internet access. Today, and he`s not yet 30, he`s realised every internet geek`s dream of building a Web 2.0 internet start-up, named SynthaSite, in the US`s Silicon Valley.

The East London-born webpreneur, Vinny Lingham, founded global search optimisation company incuBeta and its subsidiary Clicks2Customers in 2003. Four years on, once these businesses were established, he told iWeek he was ready "to move on to new adventures", referring to the launch of incuBeta spin-off SynthaSite.

"SynthaSite was a culmination of the efforts and innovation of many people out of the incuBeta Group. As the Web 2.0 phase of the internet got under way, I saw the potential of the business, did a management buy-out, and pursued the idea of building a Web 2.0 internet start-up in Silicon Valley - a long-standing dream," he recounts.

Besides, he points out, SynthaSite`s strategic partners, including Google, are based in Silicon Valley.

DRAG `N DROP WEBSITES

What SynthaSite does is make it very simple for anyone to build their own website. "You simply drag and drop content and services such as FlickR onto a webpage, hit publish, and your website is live on the web! It`s really as easy as writing a document now using Word. Owning and creating a website is now simple and free!" he proclaims.

Once people have their websites, SynthaSite makes money by selling services, such as search engine marketing via partners like Google and Yahoo.

"There are various other `upsells`, such as logo design and e-mail database management that we will look to offer in the future. We believe that we can make enough revenue from a small percentage of our user base that will make the overall business profitable," he maintains.

Lingham is convinced of the demand for such services. "The current estimate in the US is that over 70% of small businesses here do not have websites, due mainly to ignorance around the costs and benefits of having a website. We did a survey late last year and most SMBs believe that a website will cost around $1 000 - when, in fact, we`re offering it for free. This mindset will change," he says. The industry must already have been convinced - SynthaSite is a finalist in the Industry Standard Innovation 100 Awards, where it is up against the likes of Google Sites and Microsoft Office Live.

MONETISATION IS KEY

Lingham says moving a company from Cape Town to Silicon Valley was easier than he thought it would be. "Once the decision was made, it was just a process - we had great advisors helping us." He points out that SA has "amazing, world class talent - but just not enough of them or enough niches. We`re finding people with very niche skills, which would not be found in SA - and this really makes the difference to us." He also observes that there are many successful internet entrepreneurs around the world, but fewer in SA. "The unfortunately reality is that most SA internet businesses do not scale profitably, given the relatively low amounts of online advertising in SA. The secret to my success is that I`ve focused on using the internet as a global platform, and I don`t entertain business ideas that are geographically restrictive. The SA internet is only a small piece of a billion-plus global users."

SA also suffers from a lack of high-speed internet. "In the US, I have a 45Mb internet connection at home that costs me the equivalent of R200/month; Telkom charges about R1 000 for a tenth of that speed."

As for the future of business and Web 2.0, Lingham says monetisation is key. "Most start-ups don`t understand their business metrics as well as they should. I think you`re going to see a lot of Web 2.0 start-ups go under because they can`t pay the bills, and don`t have the ability to take their business to the next level. The good news is that the top Web 2.0 start-ups will rise to the top - I expect some more exciting businesses to reach that level in the next 12 months."