The Valley Endeth
Two good blogs in Always On this week and this: The Silicon Valley Diaspora is the second. They should let President Putin know it would be one less thing for him to worry about. My reply in its entirety below:
"Lots of good points, all well made and the trend line is right. However, sitting in Russia looking to commercialize disruptive technologies you have to view a start up in its whole life cycle to get the full picture.
From start up stage through to first meaningful sales companies can be run from not-the-US, and at a fraction of the cost etc. However, for many tech companies and all that I have invested in, their main customers and ALL their potential acquirers have their decision makers based in the US.
Which is where management has to be.
Talented sales and marketing people with the credibility to execute with the largest companies in the world cost the same whether the technology originated in China, India, Russia or Palo Alto. Finally as a VC I want out at some point. Ask your friendly Investment Banker to tell you the premium that a NASDAQ-listed company gets over a directly comparable company on the London Stock Exchange. Or how much Europe's leading tech company pays for a start up compared with the US. Our successful technology companies will look and feel like US companies to get that premium.
The Valley pretty much had a monopoly on innovation until recently. It's still the leading place in the world to sell innovative products and to obtain liquidity. When Russian, Indian, Chinese technology product companies have more IPO's per year than Valley ones I will join the list of worriers."
21 April 2004
The Valley Endeth
Two good blogs in Always On this week and this: The Silicon Valley Diaspora is the second. They should let President Putin know it would be one less thing for him to worry about. My reply in its entirety below:
"Lots of good points, all well made and the trend line is right. However, sitting in Russia looking to commercialize disruptive technologies you have to view a start up in its whole life cycle to get the full picture.
From start up stage through to first meaningful sales companies can be run from not-the-US, and at a fraction of the cost etc. However, for many tech companies and all that I have invested in, their main customers and ALL their potential acquirers have their decision makers based in the US.
Which is where management has to be.
Talented sales and marketing people with the credibility to execute with the largest companies in the world cost the same whether the technology originated in China, India, Russia or Palo Alto. Finally as a VC I want out at some point. Ask your friendly Investment Banker to tell you the premium that a NASDAQ-listed company gets over a directly comparable company on the London Stock Exchange. Or how much Europe's leading tech company pays for a start up compared with the US. Our successful technology companies will look and feel like US companies to get that premium.
The Valley pretty much had a monopoly on innovation until recently. It's still the leading place in the world to sell innovative products and to obtain liquidity. When Russian, Indian, Chinese technology product companies have more IPO's per year than Valley ones I will join the list of worriers."
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