Solving the Start-up & VC malaise part 2

2 responses

  1. Brad J. says:

    I have limited experience on the small/venture scale of lending, so I will ask a question instead of giving an answer.

    In areas or countries that are proven centres for innovation, what do they have that we lack? I’m thinking of VC/tech meccas like Boston-Cambridge, Silicon Valley, Sweden, Norway, et al.

    With the way things are going in Waterloo I’m thinking the VCs should start sponsoring under-25 poker players from UW. If 3 in 10 win big you’ll still get the RoC to keep your investors happy, no?

  2. AT says:

    Since it was so politely demanded…

    Most of this isn’t rocket science (unless you are invested in Gary Snoman’s latest fund YouTube – Gary Snoman 2007), but it is pretty darn close. Most new technologies are very hard to develop. It take a lot of smart people, deep pocketed investors who can stomach the risk, and a supportive government and regulatory environment. Anything that helps one of these three categories is a good idea in my books.

    I would also say that there is a fundamental accounting problem for start-up companies. Your largest expense is by far your people… but they are also your greatest asset. Accounting doesn’t really have a method of capturing this. If 20 engineers work for an entire year, are paid, say $2M, they most have created something valuable? If it is worth $1 or $100M, it is worth something… but, most of the time, there is no asset recorded on the balance sheet.

    In our current knowledge based economy, I think the sophisticated folks at Wellington Financial have figured this out, and are more than happy to support companies with this type of IP.

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