UPDATED 14:53 EST / FEBRUARY 22 2009

New Venture Creation – A New Generation of Entrepreneurs and A New Generation of Investors

Another reason for this blog is to accelerate the new venture creation process here in Silicon Valley and around the world.  This post from Thomas Friedman speaks to why siliconANGLE exists.  We need to not work with the losers but the innovators – startups.

Thomas writes “(regarding the auto bailout)…Bailing out the losers is not how we got rich as a country, and it is not how we’ll get out of this crisis.”…  “You want to spend $20 billion of taxpayer money creating jobs? Fine. Call up the top 20 venture capital firms in America, which are short of cash today because their partners — university endowments and pension funds — are tapped out, and make them this offer: The U.S. Treasury will give you each up to $1 billion to fund the best venture capital ideas that have come your way. If they go bust, we all lose. If any of them turns out to be the next Microsoft or Intel, taxpayers will give you 20 percent of the investors’ upside and keep 80 percent for themselves.”…

….”Our country is still bursting with innovators looking for capital. So, let’s make sure all the losers clamoring for help don’t drown out the potential winners who could lift us out of this. Some of our best companies, such as Intel, were started in recessions, when necessity makes innovators even more inventive and risk-takers even more daring.

If we are going to be spending billions of taxpayer dollars, it can’t only be on office-decorating bankers, over-leveraged home speculators and auto executives who year after year spent more energy resisting changes and lobbying Washington than leading change and beating Toyota.”

My Angle:

In this next evolution of the global Internet there is an explosion of large-scale new market trends and opportunities.  These opportunities will be powered by a new generation of entrepreneurs ready and available to create ideas, companies, products, jobs, and wealth.   Even with the looming financial crisis and outdated venture capital models, there has never been a better time to start a company.

Today, we are seeing that large companies are reducing their workforce releasing thousands of available talent and expertise.  The workforce structure is now global with collaboration capabilities spread across geographic boundaries.  The simultaneous decline of organized core and applied research and restrictive H1b Visa limits create different paradigms of how to identify, filter, and organize companies of the future.  This emerging paradigm changes the research and development process.  Large companies no longer have the ability to innovate in-house due to cost and expense constraints, so they will increasingly turn to startups to fill product gaps and provide for product line expansion.

With costs to start a company decreasing there are new business and revenue models emerging and solidifying, and a whole new generation of digital technology of tools and platforms omnipresent: Facebook, Google’s Open Social, iPhone, Gphone, Broadband Technologies, and even digital set top boxes.  New entrepreneurs, however, face lots of obstacles in making their vision a reality, and many great ideas and great talent never get out of the starting gate.  siliconANGLE will seize this opportunity.

From Thomas Friedman on the future out of this financial crisis:  “Let’s think, talk and plan in more aspirational ways. We’re down, but we’re not out. As we invest taxpayer money, let’s do it with an eye to starting a new generation of biotech, info-tech, nanotech and clean-tech companies, with real innovators, real 21st-century jobs and potentially real profits for taxpayers. Our motto should be, “Start-ups, not bailouts: nurture the next Google, don’t nurse the old G.M.’s.” To be fair, the stimulus package that the Obama team and the Democrats in Congress recently passed — with virtually no Republican help — goes some way toward doing just that. Hat’s off for that. Now let’s do more.”

siliconANGLE is focused on helping entrepreneurs and companies by providing information and collaboration (including research) to help those entrepreneurs and companies be successful in their new ventures.

siliconANGLE hopes to be a Silicon Valley beacon for global cutting-edge ideas and cutting-edge talent. siliconANGLE is designed so that we win only if entrepreneurs win – ideas, opportunities, innovation and invention is our focus.

We hope to bring the experience and expertise to make people successful by providing the ‘gravity’ around ideas and innovation to create a virtual social network, a peer collaboration environment, talent matching, capital, advice, and practical guidance to help entrepreneurs and businesses succeed.

Again this is completely self-funded therefore my expectations are to start slowly.  I really want to know what I can add to the blog and what features people would want to see here.  Collaborate here at SiliconAngle.com.

Welcome to a new blog that wants a positive change.

UPDATE:  I really like Fred Wilson (although I have to say that I never met him in person) but Fred is misreading the purpose of the editorial”.

Fred:   Thomas is making the point that venture works not bailing out losers… I’m actually surprised by Fred’s statement here … very myopic not in the normal Fred Wilson flare.. Fred says.. “The venture capital business is an asset class where the top 10-20 percent of the firms make 80%+ of the returns. That’s how its always been and that’s how it will likely always be. It’s because the best entrepreneurs want to work with firms with reputations for making money, making connections, recruting top talent, and getting the right exit at the right time. And those are the top 10-20 percent of the firms.”

My Angle:

Existing or big venture firms shouldn’t take government money, but I think new firm will be created.  Call them weak firms at first, but they will certainly stimulate the market. More competition is good for the venture market.  Why?  Most venture firms these days “are not venturing”.  I will say that Fred is active and “venturing”, but I think he’s off base with his above quote.

Venture is changing and that new dynamics will transform it:  transparency, new competition, global market, faster information. – Fred Wilson should know this. Fred: are you saying that venture will not change and the statement above will be true for a long time?


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