Comments on: Some Texas Optimism for Tech Startups http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/ Trusted Insights and Conversations on the Next Wave of Technology Sun, 22 Nov 2009 21:55:59 +0000 http://wordpress.com/ hourly 1 By: Affordable Austin: No Longer a Tech Mecca [GigaOM] http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-954087 Affordable Austin: No Longer a Tech Mecca [GigaOM] Fri, 19 Jun 2009 22:36:18 +0000 http://gigaom.com/?p=24320#comment-954087 [...] flights to California being cut. The service provider community has shrunk and the city, which has historically been a one-VC city — doesn’t have access to a ton of smart capital. We do have a lot of educated, smart [...] [...] flights to California being cut. The service provider community has shrunk and the city, which has historically been a one-VC city — doesn’t have access to a ton of smart capital. We do have a lot of educated, smart [...]

]]> By: Affordable Austin: No Longer a Tech Mecca http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-954072 Affordable Austin: No Longer a Tech Mecca Fri, 19 Jun 2009 21:43:38 +0000 http://gigaom.com/?p=24320#comment-954072 [...] flights to California being cut. The service provider community has shrunk and the city, which has historically been a one-VC city — doesn’t have access to a ton of smart capital. We do have a lot of educated, smart [...] [...] flights to California being cut. The service provider community has shrunk and the city, which has historically been a one-VC city — doesn’t have access to a ton of smart capital. We do have a lot of educated, smart [...]

]]> By: Reckoning http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904195 Reckoning Sat, 11 Oct 2008 20:03:41 +0000 http://gigaom.com/?p=24320#comment-904195 @Stacey I think everyone agrees with you that its better to have access to a firm with capital. However, that was also the case in the 2000 funds and they didn't deploy crap. We have all seen this movie before. These GP's will make millions per year just collecting mgnt fees at the expense of hardworking teachers, union workers, state workers.... frankly that's BS. The VC model is broken and the next business cycle may finally take steps to fix it. @Stacey
I think everyone agrees with you that its better to have access to a firm with capital. However, that was also the case in the 2000 funds and they didn’t deploy crap.
We have all seen this movie before. These GP’s will make millions per year just collecting mgnt fees at the expense of hardworking teachers, union workers, state workers…. frankly that’s BS. The VC model is broken and the next business cycle may finally take steps to fix it.

]]> By: Kyle Brady http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904156 Kyle Brady Sat, 11 Oct 2008 15:05:48 +0000 http://gigaom.com/?p=24320#comment-904156 I put together a list of startups who don't have the same ... optimism ... that you might. http://www.kyle-brady.com/2008/10/10/how-to-cut-your-startups-costs/ It applies to Web 2.0 only, of course. --Kyle I put together a list of startups who don’t have the same … optimism … that you might.

http://www.kyle-brady.com/2008/10/10/how-to-cut-your-startups-costs/

It applies to Web 2.0 only, of course.

–Kyle

]]> By: ronald http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904155 ronald Sat, 11 Oct 2008 14:34:39 +0000 http://gigaom.com/?p=24320#comment-904155 "But he also said that this time around, many of the startups are well positioned to withstand a downturn, especially those with recurring revenue streams." And where do those revenues come from? "We have a different mix here, and are focused on software and media plays.”We have a different mix here, and are focused on software and media plays.” Sounds a lot like wishful thinking to me. If times get tough, people stick with hat they know. Which favors incumbents instead of start ups, iff there is any investment at all. Ask the car companies how much money they have left to advertise in new media. I also read that Colorado will be better off, then the rest of the Country. Guess California thinks the same, in other words we all will feel the same pain. I'm for once with Michael Arrington: "Now can we please get back to work? There’s still a ton left to do before we get to Matrix-style virtual reality, the Singularity, and mobile phones with batteries that last a whole day." http://www.techcrunch.com/2008/10/10/an-ignoble-but-much-needed-end-to-web-20/ “But he also said that this time around, many of the startups are well positioned to withstand a downturn, especially those with recurring revenue streams.”

And where do those revenues come from?
“We have a different mix here, and are focused on software and media plays.”We have a different mix here, and are focused on software and media plays.”

Sounds a lot like wishful thinking to me.
If times get tough, people stick with hat they know. Which favors incumbents instead of start ups, iff there is any investment at all.
Ask the car companies how much money they have left to advertise in new media.

I also read that Colorado will be better off, then the rest of the Country. Guess California thinks the same, in other words we all will feel the same pain.

I’m for once with Michael Arrington:
“Now can we please get back to work? There’s still a ton left to do before we get to Matrix-style virtual reality, the Singularity, and mobile phones with batteries that last a whole day.”
http://www.techcrunch.com/2008/10/10/an-ignoble-but-much-needed-end-to-web-20/

]]> By: Avi Avi http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904153 Avi Avi Sat, 11 Oct 2008 14:18:09 +0000 http://gigaom.com/?p=24320#comment-904153 The upside of a busy VC is much more compelling to the partners then the 2% management fees. They are there to invest. And bare in mind the number of real inovations and great companies that were built in the slow years of 2001-2004 (did I mention Google?) The upside of a busy VC is much more compelling to the partners then the 2% management fees. They are there to invest.

And bare in mind the number of real inovations and great companies that were built in the slow years of 2001-2004 (did I mention Google?)

]]> By: Stacey Higginbotham http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904149 Stacey Higginbotham Sat, 11 Oct 2008 13:56:38 +0000 http://gigaom.com/?p=24320#comment-904149 Guys, it's better for entrepreneurs to have access to firms with capital who are ready to deploy it. Nowhere does it say AV is planning to sit on the money. Firms invest during downturns because there are fewer dollars chasing opportunities and valuations are lower. Obviously, they're more risk-averse, but they'll still invest. Guys, it’s better for entrepreneurs to have access to firms with capital who are ready to deploy it. Nowhere does it say AV is planning to sit on the money. Firms invest during downturns because there are fewer dollars chasing opportunities and valuations are lower. Obviously, they’re more risk-averse, but they’ll still invest.

]]> By: Madashell http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904148 Madashell Sat, 11 Oct 2008 13:12:32 +0000 http://gigaom.com/?p=24320#comment-904148 Great catch Reckoning! I'm sure these guys and a lot of other vulture fund “salesmen” have convinced many to invest in whatever hot 15 minute of fame product/service offering is selling. 99% of the investors (sheep) are "pitched" into the next “new” thing. Let's face it, just because people made mistakes investing in highly leveraged credit swaps does not mean that they are less susceptible to the sales pitch's of the venture vultures. Great catch Reckoning! I’m sure these guys and a lot of other vulture fund “salesmen” have convinced many to invest in whatever hot 15 minute of fame product/service offering is selling. 99% of the investors (sheep) are “pitched” into the next “new” thing. Let’s face it, just because people made mistakes investing in highly leveraged credit swaps does not mean that they are less susceptible to the sales pitch’s of the venture vultures.

]]> By: bubbatex http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904107 bubbatex Sat, 11 Oct 2008 04:36:32 +0000 http://gigaom.com/?p=24320#comment-904107 You should not be angry at Austin Ventures - they don't hold a gun to anyone's head - but I would be asking the CTRF why the hell they are giving money to them in this market. You should not be angry at Austin Ventures – they don’t hold a gun to anyone’s head – but I would be asking the CTRF why the hell they are giving money to them in this market.

]]> By: Parkite http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904102 Parkite Sat, 11 Oct 2008 03:16:14 +0000 http://gigaom.com/?p=24320#comment-904102 totally agree with Reckoning........that is BS. totally agree with Reckoning……..that is BS.

]]> By: Reckoning http://gigaom.com/2008/10/10/some-texas-optimism-for-tech-startups/#comment-904094 Reckoning Sat, 11 Oct 2008 01:32:03 +0000 http://gigaom.com/?p=24320#comment-904094 ....."saw the crunch coming it kicked its fundraising machine into high gear. Now Austin Ventures has $300 million for early-stage deals and $600 million for growth equity"..... I'm sure Austin Venture's Limited Partners must be thrilled to be reading this story. Just so I understand. These brilliant guys saw a financial crises coming and decided to rapidly close $900M even though they will most likely not be making many investments in the coming couple of years. $18M in yearly management fees. For what? WHAT A JOKE!!! This is why many people in USA are angry. For example, if I am a teacher in California working my ass off to just get by and you told me some of my retirement money is going to Austin Ventures knowing damm well they will most likely sit on the sidelines for the coming years while collecting $18M/Yearly for their few General Partners guess what my reaction is going to be..... WTF I will forward this wonderful post to the California Politicians as well as to CalPers and Calstrs. Thank you for the post. …..”saw the crunch coming it kicked its fundraising machine into high gear. Now Austin Ventures has $300 million for early-stage deals and $600 million for growth equity”…..

I’m sure Austin Venture’s Limited Partners must be thrilled to be reading this story. Just so I understand. These brilliant guys saw a financial crises coming and decided to rapidly close $900M even though they will most likely not be making many investments in the coming couple of years.

$18M in yearly management fees. For what? WHAT A JOKE!!! This is why many people in USA are angry. For example, if I am a teacher in California working my ass off to just get by and you told me some of my retirement money is going to Austin Ventures knowing damm well they will most likely sit on the sidelines for the coming years while collecting $18M/Yearly for their few General Partners guess what my reaction is going to be….. WTF

I will forward this wonderful post to the California Politicians as well as to CalPers and Calstrs. Thank you for the post.

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