Paul Walsh, the Irish Opportunist

I was going to post this as a comment on TechCrunch but my response was getting too long. It may prove beneficial to some of my readers anyway.

The TechCrunch post to which I’m commentating on is entitled “Dear VCs: Look at the idea, not the postcode”

Here’s the letter which forms the basis for Mike’s post

Hi Mike

I am just dropping you a quick email to help expose what I think is a serious issue with the UK tech industry. As a developer I have been working on a web based product for over a year. There is a huge (untapped) market for this product, it requires minimal overheads and has potential for a massive amount of growth.

So, what’s the problem you may ask?

Unfortunately I am based in XXXXX, which has virtually no VC organisations. Therefore I am having to approach VCs in London. The problem is that they do not have the slightest interest in talking to people such as myself, unless you are refered to them or meet them personally. This is a very big problem from my location! I am taking the time to travel to London in November, but getting VCs to meet you is an even bigger problem.

I’m sure you have lots of other issues and topics to address, but people in this industry exist across the country and its very hard for us to break into the market.

With your position at TechCrunch UK, you have a lot of influence and if you ever have the time to address this problem with the correct people, you would have the support of a very large number of entrepreneurs / developers / CEO’s from north to south.

Many thanks for your time.

Mike’s response in part

But what really makes me boiling mad is that he is not getting a fair hearing from potential backers. Yes, maybe he is barking up the wrong tree and doesn’t need VC funding. Maybe he just needs a friendly push towards a different type of backer.

But it behoves people like VCs to give an entrepreneur a straight answer, not waste their time, and - from first principles - hear their idea first and not care where they come from.

I don’t think the post, or at least the complaint being explained by Mike, lives up to the title.

In summary, the technology entrepreneur to whom Mike refers, has an issue getting in front of a VC. Both he and Mike are putting it down to the entrepreneur’s location. I put it down to his lack of contacts, or lack of contacts who respect him and/or his idea. You could argue that his lack of contacts and introduction opportunities is due to his location. But can you blame VCs for that? I don’t think so.

Location doesn’t matter if you have a personality and are willing to put in the effort to building your network. Hell, Facebook could be used over time to build a network so you could demonstrate who you are and what you’re doing. I’m pretty sure Richard MacManus who runs Read/WriteWeb would agree when I say that you can make a name for yourself no matter where you are.

I’m asked regularly for an introduction to investors. The chances of me making an introduction, irrespective of the company’s location, are slim to no chance. This is mainly to do with the fact that I would only recommend people I know/like and have a great idea. Otherwise I’ll end up risking my own reputation, not to mention wasting the investors’ time. This is particularly important right now as I prepare to officially engage with VCs about Segala (you know who you are and yes, I’ve finally finished the Business Plan).

I’m sure those who come from a farm in the arsehole of nowhere and are refused an introduction, may complain about their location. The fact is, it’s down to them not getting out there and getting noticed.

Segala HQ is in one of Ireland’s most prestigious office complexes – close to Microsoft HQ. However, most people don’t know that. VCs certainly don’t care. If anything they’ll ask if we really need it. It’s about people, not location. Stop blaming VCs for everything and look in the mirror. I don’t think I’m disagreeing with Mike in this post, it’s more of a wake up call for his poor entrepreneur.