RE: UKNM: Wimps?

[Greg Baker]

I can't help but agree with you on this Jamie.


For a truely adventurous Venture Capitalist the web in the UK (or

Europe) should look like a wonderful gamble. The investment isn't going

to be that huge on any single investment so you can afford to spread

your risk, and with the States as an example you can see a very

promising trend developing. Top that with the long self life of really

innovative technology (nothing like a good patent or two to keep the

bank happy) and any sane venture capitalist should be looking very hard

at the sector.


But getting hold of these enlightened people seems next to impossible,

it almost seems that the Venture has departed from the Capital in the

UK. 


The real question is why - has the larger gains in the States drawn away

the talented money too?



> -----Original Message-----

>

From: Jamie Unwin [SMTP:jamie [dot] unwinnml [dot] guardian [dot] co [dot] uk]

> Sent:	Tuesday, October 27, 1998 6:27 PM

>

To: uk-netmarketingchinwag [dot] com

> Subject:	Re: UKNM: Wimps?

> 

> 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.

> 

> >> Expedia (Microsoft) - Huge amount of cash, and I'm sure smaller

> operations tried online hotel 

> >> booking systems but failed because they didn't have the clout to

> sucessed.

> >

> >Preview travel are doing very nicely thankyou. 

> 

> Maybe, but if you already have several large companies in the market

> place it is going to be harder to break through, also Microsoft don't


> have to make a profit from Expedia, it can be passed off as

> advertising or markerting.

> 

> Not that this is an ideal situation, and hopefully someone can come up

> with something better than the Microsofts of this world can, but you

> can't deny that Microsoft have more clout to pull something like this

> off on a global scale ?

> 

> >> Finally software development, within such a fast moving industry is

> very risky, and would therefore need an investor who would be >wiling

> to invest in technology which may be out of date by the time it is

> realised and >therefore unmarketable ?

> >go fucking tell that to Kleiner-Perkins. Tell it to marimba,

> netscape,

> >intuit, dimensionX, Real, macromedia, adobe, Avid, Headspace,

> inktomi.

> 

> And how many investors have invested in web companies that have gone

> bust, and had their fingers burnt.

> 

> 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 ?

> 

> 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, ok thats what Venture Capitalists deal in,

> but that I don't find it surprising  that they aren't queing up to

> invest.

> 

> 

> jamie