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Subject: Re: UKNM: Wimps?
From: freddy
Date: Wed, 28 Oct 1998 14:56:04 GMT

| Stefan, I'm not saying I don't wish UK banks and Veture Capitalists would
| invest more in the web industry, just that I'm not suprised they aren't.
| >> Most of these site aren't NEW and have succeded because they were the FIRST
| in a fast evolving medium....
| >
| >err. hence "innovations", I believe. The whole point is that banks and
| >VCs in the US are willing to invest early in risky ventures.
| But these sites did have something 'live and working' that a bank or Venture
| Capitalist could see had potential
| Yahoo wasn't an unknown site before it got capital to expand.

Many companies in the UK have great products up and running too! Obviously
investing in companies who havent yet to roll out their product is much
riskier (there are many shades of risk) but there have been many web
service companies I have certainly come across recently who are after
venture capital and have great services up and running.

| And how many investors have invested in web companies that have gone
| bust, and had their fingers burnt.

That is so obviously bound to happen. The investor's mind set must change
change though if we are to have a thriving and successful industry of our
own. Perhaps 9 out of 10 will fail, and the investors have to realise this
(not having taken risks before, they are prone to faltering after a tumble
at the first hurdle). SPREAD THE RISK! The one that succeeds will reap fine
rewards. One sure way of making 10 out of 10 fail is not to invest at all.

| True, there are some very lucky investors out there but I bet there is a lot
| more who wish they had invested there money in something more solid, like
| an odds on favorite in the 2.45 at Kempton ?

This is exactly the attitude which is detrimental to our industry!

| I'm not saying that venture capital in the UK isn't poor, and couldn't be a lot
| better (Goverment incentives, ie. tax breaks, for investing in new IT
| companies would be a good start). But just pointing out that the web is a risky
| medium,

No s*** sherlock

| ok thats what Venture Capitalists deal in, but that I don't find it surprising
| that they aren't queing up to invest.

Again, this is exactly the attitude which is detrimental to our industry!
Spread the risk. Remember not to put all your eggs in one basket, carry out
due diligency carefully, and then take a punt.

If I had money, I know where I'd be investing! This medium is ill suited to
the stayed British psyche. It must change!


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