Europe needs more early-stage investors
April 11, 2008 //
Just read a post on TechCrunch which inspired me to write my thoughts on this subject.
Mike finished his post with
We can assume that the whole startup investing environment is going to get tougher and more competitive as the VCs mature and the startups themselves raise the bar in quality. It’s also now an international market, with some entrepreneurs threatening to move if they don’t get the attention of Euro VCs.
It’s one thing for an investor to ‘get it’. It’s another to back it. I’ve heard so many entrepreneurs complain that although the VCs to whom they’ve pitched, ‘get it’, they all expect to see ‘traction’. It’s easier to invest when a company already has traction, where’s the risk in that. We need to see more early-stage investors willing to take educated/calculated risks.
I’d consider a move to the Valley, not because I don’t feel European investors get what I’m doing. I’d consider a move because there’s an entire ecosystem in one cluster in San Francisco. I’d also consider it because to be quite frank, the numbers add up. There’s a bigger (local) customer based in the US
That said, I’ll find out for myself, exactly what The Valley is like. As I’ve posted recently, I’m heading over with The Web Mission to help with connecting/networking/introductions.
Would you consider a move to SF and if yes, why? If you’re already there, would you consider a move to Europe, or is that just a dumb question?
Helene Haughney says 
Paul G says 
Ted says 
Ross Tweedie says 
I myself would definitly consider moving to SF.
1: Everything is so cheap over there.
2: The Dollar is very weak, so when you arrive over with your Euro/Pound, it’s going to go far.
3: Startups everywhere. When you tell someone you’re launching a new website, they “get you”.
4: Audience. If your service is good enough, Scoble etc will take a spin over to your office, shoot some video and broadcast to thousands of potential users.
5: There are investors everywhere.
6: Networking and parties
6: If you fail, you’re not ridiculed.
7: Beautiful weather
The only problem is getting a Greencard. I can’t see any way of getting one without winning one?
April 11th, 2008
Indeed, thanks for the mention - link to the original post is above.
April 11th, 2008
Sorry Mike, thought I linked to the site. Hate people who don’t link to original stories
April 11th, 2008
Paul, have you been to the Innovate Europe even that Guidewire Group (Chris Shipley, Mike Segal, Frank Kelcz) organize in Zaragoza, Spain every year? I’d highly recommend going (full disclosure: Guidewire has always comped me as a blogger, so I haven’t paid). There are great discussions about just this sort of thing, with lots of worthwhile people. Highly recommended.
What I love about the Bay Area is the healthy respect for failure and its uses. Indeed, my only worry about a blog like Valleywag is that it might start to make failure an f-word out there. (I’m not significant to have to worry about my secrets making it onto the site. Your mileage may vary. ;))
It’s so cool to see two people talking and one says, “Yeah, I’ve had five failed companies” and the other replies, “Cool, lots of experience! Maybe your next one will be The One.”
The other thing is the ecosystem aspect which you mention in your post. Pretty much everyone you meet out there is somehow involved in entrepreneurial endeavors, so it’s not as if you have to explain to them why you’re in it or what motivates you. So many of the people really are, struggle and all, living their dream. The buoyant effect of this on one’s own attitude and motivation cannot be underestimated. It’s just such a freaking buzz to be around such an outlook. The mindset is a complete 180 from the “Who do you think YOU are?” attitude of the Brits (and other Europeans, with Germans being perhaps the very worst, almost as bad as Japan when it comes to the perceived shame of failure).
Gotta laugh at Dillon saying that everything is “so cheap” in SF, though. Yeah, it’s a good deal compared to rip-off Britain, but it’s still pretty high for these here Yoo-nighted Stytes.
April 12th, 2008
Hi Paul, I’m also flying out on WebMission (with Groupspaces), and was also(!) inspired to write my thoughts on this subject following Mike’s post.
I agree with your assertion that the numbers all add up much better on the West Coast currently. The question I find most interesting at the moment is: How long until being within a 30 mile radius of Sand Hill Road is (almost) a prerequisite for a 9 figure exit?
P.S. Still got spaces at the BBQ on Sunday? Brian Solis’ PR 2.0 blog is awesome.
April 13th, 2008