OT Hi Saturn V,
RE: "However most of the communication companies are in a temporary nose dive."
I know. This became apparent at the end of last year. Fortunately, we have other channels to pursue.
RE: "You must make sure that you have adequate funding for a possible dry spell."
We have a very low burn rate. Most companies spend 2.5X's more than us (same-size). So, we're pretty frugal-minded thanks to our CEO.
I believe the US economy may have some issues for 2 years.
RE: "Good communication companies are still being funded by the VC community."
VC funding isn't a very creative way to raise money. Basically, you're giving away pure equity in exchange for money. And that's an expensive trade because the trade involves only equity. So, I think a better way to do it, is to exchange other things.
The kind of things a startup can exchange or provide for money (and I'm speaking generically, not specifically about us), is licensing, standards support, engineering development, build-to-order, etc., and when a startup does this, you earn your money without giving up your first born (and in this market, your second born too). If a startup cannot achieve one of these items, maybe they have no business raising VC money in the first place.
But one thing about VCs, is they don't like risk. They are incredibly risk adverse. They aren't interested in solving industry problems. They're financial people, not high-tech folks wanting to crack an industry problem. With absolutely great respect for their great intelligence (and these folks are incredibly smart), but you could sort of describe their method of investing similar to a sleazy date: they like it easy and want a homerun. And when all the hard work is done, and all the risk is ironed out, then they come to the party to play. (I'm being sarcastic, of course).
Having said all of that, I was invited to meet a VC later this week. I feel like I have an appointment with the dentist.
RE: "BTW in December you talked at length about your friends pain induced by the crash of the Intel stock. How have those people coped ? "
The one contact is actually fine, doing better than me, in fact. As it turns out, he simply swapped one expensive asset for another expensive asset (sold INTC at a reasonably high point and bought a house). (I incorrectly assumed he hadn't sold stock).
However, the other contact will have to weather this out. There's not too much he can do to help his situation at this point, because he got so over-extended that his alternatives are low.
Regards,
Amy J |
