VC Confidential

The Power of Technology & the Knowledge Economy

The most recent issue of Institutional Investor (its "40th Anniversary Issue") has a series of interesting perspectives from the pioneers and leaders of the financial world ranging from John Bogle & Warren Buffett to Arthur Rock & Henry Kravis. If you can chase it down, it is quite the interesting read. One of the pieces is from Michael Milken who is on the road to redemption. In the piece he states:

"As financial technology is deployed around the world, it has the potential to reduce poverty and the kinds of tensions that breed terrorism."

The statistic that caught my attention the most was his comparison of Jamaica versus Singapore. He wrote:

"Taking this principle (giving talented leaders access to capital...e.g junk bonds) to the national level, there are only three ways for a country to build human capital: Increase knowledge and skills, improve the quality and length of life so people are more productive or import people with specific abilities. Some countries have done this better than others. Consider the two former British colonies of Jamaica and Singapore. Back when I was in school in 1960, their economies were similar, with a gross domestic product of about $1,900 per person (in current US dollars). But they chose different paths to development. Jamaica centered its economy on agriculture and tourism and today has a per capital GDP of about $3,900. Singapore, which developed its human and social capital and created a knowledge infrastructure, is a modern technology powerhouse with a GDP of more than $30,000 per person."

In the end, it is all about "empowering" the most talented people you can find, whether in entrepreneurship or philanthropy, through both capital and resources. This is what makes the difference in your city, your region or your country. Some view Venture Capital more as a day at the casino with bets spread out across the roulette table. Others view it is the critical enabler of innovation. I like Milken's final conclusion on his piece on philanthropy (which could also cover VC)..."It always involves more than just writing checks. It takes an entrepreneurial approach that seeks out best practices and empowers people to change the world."

Thanks Dick, Eric, Steve & Matt for the Ride

A number of you have been wondering if I am still alive or have given up blogging. Life has been busy to say the least and a 36 hour day would certainly help on getting the posts out. Several companies of mine are selling, financing or working on strategic partnerships. This combined with travel soccer tournament season with the kids and I am no longer master of my life.

That said, as many of you saw on Friday, Google formally announced its acquisition of FeedBurner. I wanted to take this opportunity to thank the founders (Dick, Eric, Steve & Matt) as well as the rest of the management team (Charley, Rick, Brent, Joe, Chris, Don, Eric, Traci & crew) for a great ride. Usually, in the venture world, investments hit near death experiences before sky-rocketing to success. (some also jump into longer-term death status). FeedBurner came out of the shoots on fire and never looked back. In addition to being one of the best financial deals we have ever done, the FB team was one of the most enjoyable to work with. They were always proactive in identifying both opportunity and issues as well as laying out well-thought through solutions. Other words that come to mind are ethical, open, thoughtful and efficient. The community of users and commentators also seemed to share the same enthusiasm for the team and its approach. This drove much of the viral spread of the business. Note to other entrepreneurs: create a better product, iterate frequently to stay ahead, reach out actively & be responsive to your user base and don't be arrogant asses.

Gang...I'm gonna miss our monthly board meetings but thanks for a great ride!