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To: Amy J who wrote (129819)	3/12/2001 12:42:20 PM
From: Saturn V	Read Replies (1) \| Respond to of 186894

Hi Amy, OT - Raising Money Just be careful about running out of money. The best time to raise money is when you dont need it. When you dont need money, lenders like banks and VCs will run after you. But when you really need the money no one will give it you. Even if you get the money the lenders will subject you the third degree, and you may get Shylockean terms. I have seen this happen time and time again. Once again I wish you and you enterprise the best of luck. The stock market and the Hi Tech sector continues to be in free fall. What I am hearing about the communication business is that in February "some one turned off the switch", and all new orders stopped abruptly. The blood bath in Cisco and other communication companies is not over, and it may take a year for a turn around in the earnings of the communication companies. Since these companies had staffed themselves for massive growth, there are going to be major layoffs and extreme pessimism in the glamorous communication business ! I hope that the CPU business turns around sooner,since the customer CPU inventory problems are less severe than in the communication sector. The Intel stock price probably will probably not return to its highs for 18 months. For Cisco the old highs will not return for several years. The era of extreme optimism is over for several years. The sky highs PEs are gone when the realization sinks in that all HiTech and the New Economy companies are also cyclical, perhaps even more so than the Old Economy. Until the market bottoms I shall keep my fingers crossed.

To: Amy J who wrote (129819)	3/12/2001 2:43:11 PM
From: Proud_Infidel	Read Replies (2) \| Respond to of 186894

OT Amy, 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). I can relate to this. When I worked as a Research Assistant, we were working on a very promising method of diagnosing breast cancer, using Cathepsin D-31. All of our studies pointed to a statistically meaningful detection rate, and yet no drug companies would give us money to help with the research expenses. They only wanted in after all of the research was complete and the results were clear. By that point, I think it goes without saying, we would no longer need them! Too many people today want the reward without taking the risk; I don't believe it is confined to just the VC guys. </story> Regards, Brian

To: Amy J who wrote (129819)	3/12/2001 3:09:21 PM
From: GVTucker	Respond to of 186894

Slightly OT, Amy, RE: VC's Please note that the VC world you're talking about is a recently developed world. The 'old world' VCs (Arthur Rock comes to mind immediately, as a little on topic sidebar) put forth a ton of effort and imagination to make their money. It will take a very long time, but, just like about everything else, venture capital cycles. And right now, venture capital still hasn't really begun to go down very much. Once it has, and then has bottomed out, my guess is those old world ways will be the only way to make money.