Private Equity is not the answer

Many startups have turned to private equity firms in the past few years for next-round fundiing, but that option doesn't look to be available in the current credit crunch.

According to the Boston Consulting Group and the University of Navarra business school in Spain, half of all companies backed by private equity are expected to default on the debt and many buyout firms will be closing their doors soon.

That opens the opportunity for private-public partnerships between VCs and foreign governments to take up the slack for driving innovation and bringing the tech economy back.

Line up set for VComm Venture Faire

The selection process is complete and the participant list in the VComm Venture Faire January 21, 2009 in Redwood City is set.  

From the gaming world, CodePlay, Mutators Research and DotRed will present their vision for game development tools and platforms representing a combined market potential of more than $80 billion. NX Vision will demonstrate its revolutionary approach to place shifting media technology and SnoCat will present a new profit model for social media.  In the medical world, ICEPhone will take the wraps off mobile communication for emergency services and iBehave will reveal technology to reduce animal testing and speed pharma technology to market.  Finally Green-sector players DesignLED and IRT Surveys will reduce power consumpton in consumer electronics and greenhouse gases in buildings, respectively.

These nine companies have been selected by the judge committe provided by the Millennium Group, Scottish Development International and ITI Tech Media, from more than 30 potential participants.

It's not just survival

Business Week Magazine ran an article this week by Rory Driscoll regarding the state of venture capital and tech startups.  Driscoll prefaced the remarks that many VCs are advising companies to cut costs going forward, but the author points out that is not the answer to success.  The real key is being able to establish the "must-have" aspect of your business front and center.

This concept is at the heart of the VComm Venture Faire.  Working with the Scottish trade governmental agencies, we are vetting participating companies and looking for that key point that makes them potentially successful in the short run.

Hope lies in Venture Capital

Redwood City California -- The decisions of venture capital and angel investment could be a significant factor in how long the current recession lasts worldwide according to Gary Schlossberg, vice president and senior economist for Wells Fargos, Wells Capital Management.

Speaking today at the Economic Forecast meeting of the Redwood City/San Mateo County Chamber of Commerce, Schlossberg ticked off a list of factors that will determine how long and deep the recession will go, including consumer spending, government stimulus packages and mortgage renegotiation. But he also called out the role of private investment in the form of entrepreneurial support as a key factor.

"There's a lot of money available for investment, but the channels are currently choked off." Schlossberg encouraged the businessmen and investors in the 200+-person audience to start the process of getting new businesses off the ground.

Lou Covey, CEO of Footwasher Media and an organizer of the VComm Venture Faire, said after the event, "One of the few established banking entities that is doing well in this economy is giving us a roadmap to recovery and prosperity. This is exactly the reason we chose to launch our event at this time. The financial introspection and reserve of the past two years needs to be put aside. It's time to get back to work."

IdaRose Sylvester to provide market analysis

The VComm Venture Faire team today announced that IdaRose Sylvester, former senior industry analyst at IDC, has joined as the objective analyst for presenting companies' market projections. Ms. Sylvester's specialties are High technology strategic marketing, strategic planning, industry analysis, competitive analysis, market research, and prognostication. She consults with a variety of companies in business development, partner marketing, relationship building, entrepreneurial management and leadership.

In explaining her decision to come on board with the event, Sylvester said, "New markets and entrepreneurial efforts are my passions. Connections with my network--in my company, with my clients, with new people who can help shape my view of the world--are always of interest."
Ms. Sylvester has experience in multiple markets including electronics systems and semiconductors, digital connected homes, video delivery technologies and services, green technology and alternative energy, Web 2.0 and social media.

VComm Venture Faire venue chosen

The VComm Venture Faire organizers have chosen the Seaport Conference Center in Redwood City, California as the site for the January 21 event. The Center, located in the Port of Redwood City, offers panoramic views of San Francisco Bay, high-speed internet connections, ample free parking and gourmet catering, in a flexible and intimate facility perfectly attuned to the unique concept of the Venture Faire. The conference Center is within 30 minutes of all major Bay Area airports, and probably more importantly, 15 minutes of Sand Hill Road.

EETimes points to opportunities in Europe

Today in EE Times, an article on the Venture Scorecard indicated that the UK offers significant opportunities for investment from the Silicon Valley community.

The field is opening up

The VComm Venture Faire is gaining momentum. More than a dozen companies have already come forward for the evaluation process and it reach far beyond the electronics field. Biotech, green and online entertainment companies in Scotland are vying for the coveted positions. And the vetting process for VCs and investors is now underway. If you're interested in participating, contact us ASAP.

Helping investors with due diligence

Even as investors flee the stock market and credit markets dry up, there is more money available from US investors than ever before, but it's harder for those investors to make the decision to invest.

According to Dow Jones, in the United States alone there are 5,000 start-ups vying for funding from more than $100 billion in venture capital, but every year only a fraction of those available funds are invested for one reason. The VCs just don't have enough information about the companies to make an informed decision, especially in the electronics niches of fabless semiconductors, chip design and optoelectronics. Due diligence for the VCs is even more difficult today as US press and analyst communities are restructuring and eliminating coverage of these arenas, an important source of information for investors.

From late September through early December, venture capitalists travel back and forth in the United States attending investor conferences in San Francisco, Silicon Valley, Austin, Boston and New York City. They are looking for the next solid investment but, for the most part, they will come away with a few more business cards and a case of indigestion from the rubber chicken meals. The general take on these conferences rarely varies: We've heard it all before and we still don't believe it.

The Millennium Group is breaking the mould with the ground breaking VComm Venture Fair. An exclusive event designed to put start-up companies in front of key investors in their natural habitat—the Silicon Valley.