Hi all - with regard to vendor financing [vf,] there is no doubt the deep pockets like NT, LU and CSCO are going to scale back
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I actually think it is healthy. The weaklings will die. Darwinian? Maybe, but necessary.
Of course there will be write off, but as I ve pointed out time and again, even the best VCs can't expect a great hit rate. If they can get one homerun out of ten, they are likely to garner good return --- not great return, but my guess is that triple digit return is indeed an anomaly.
Or, to put it this way. Companies like NT can't expect 100% success rate with their R&D, so do we say they are doing lousy R&D, probably not.
Therefore, so long as NT is exercising caution when caution is advised, I ve no problem to see her continue the vf activities. A necessary thing to hedge bet and win alliance, IMHO
best, Bosco |
