Many online business-to-business (B2B) entrepreneurs are using venture capital to buy their way into a marketplace they don't understand, according to Andrew Main Wilson, the CEO of newly-launched B2B portal, iod.com.

Main Wilson said that internet companies have been caught up in capturing first mover advantage, when they should focus on the delivery of services. He said: "I think one of the problems is that many very bright 'e-entrepreneurs' do not understand how difficult it is to reach the business-to-business consumer."

His comments came as the Institute of Directors (IoD) launched its own online B2B services portal. According to Main Wilson, iod.com will be a "one-stop e-shop" for directors of small and medium-sized businesses which will offer an online job market, news feeds, distance learning, business information and aggregate buying services. iod.com will go live by the end of autumn.

Anna Lagerkvist