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Subject: Re: UKNM: Silicon Valley In Trouble?
From: Sean Phelan
Date: Thu, 7 Jan 1999 13:13:32 GMT

Sajid wrote:

>If you've had any exposure to the VC culture in the UK, chances are
>that you may have looked to Silicon Valley as a utopia where your idea
>is more likely to get funding. Indeed, Keith Teare went over there to
>set up Centraal who are behind RealNames.
>.....article summaries clipped.....
>Dark clouds ahead? I hope not as the Valley has been the engine room
>of the new Internet revolution. I suspect that the hardware
>manufacturers are going to come off worst initially, but I suspect
>that we all may feel the chill. But if companies in the area are
>losing their competitive edge, does this open up opportunities for us
>this side of the Atlantic? Just a thought...

No, I don't think there are dark clouds ahead for silicon valley and
other US-based VC start-ups at all. There is a really, really vast
pool of venture capital, and there is vast, consistent demand for tech
IPOs. Those are the two key components. See the Wall Street Journal
Europe over the last few days for evidence of a ready market for IPOs.

As far as opportunities for "us", I think we either work in country-
specific markets or the global market. If you work in the global
market, then you should probably be raising funds in the US and also
planning your exit strategy there - the US has the lowest cost of
capital, biggest management and professional skills pool, biggest...
everything you need. If you are working in a country-specfic
market you probably want to raise funds and plan an exit in the
same country, and currency, as your customer base.

Sean Phelan seanatmultimap [dot] com http://www.multimap.com
phone (within UK): 0171 433 0460 fax (UK): 0171 209 5194
phone (Int'l): +44 171 433 0460 fax: +44 171 209 5194

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  UKNM: Silicon Valley In Trouble?, Sajid Mohammed

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