Demo Europe Hits Russia — and Start-ups Have To Beg 26
judgecorp writes "The Demo VC funding event has hit Europe (Moscow, specifically), and it is very clear that start-ups in Europe have to compete hard for any venture capital. In its 20 year history in Silicon Valley, Demo is famous for highlighting subsequent success stories such as Netscape, Skype and Salesforce.com. Demo Europe began with a venture capitalist waxing lyrical on how the shortage of funds means he gets plenty of choice where to put his money. Promising tech start-ups have a series of hoops to jump through including brief pitches. The most promising candidates so far include a Russian social VoIP network and a shared whiteboard."
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Alrighty then! (Score:1)
Promising tech start-ups have a series of hoops to jump through including brief pitches.
Define "promising".
Yet another wanna be "social networking" site? Or app? Or TV streaming app?
Or yet another "big data" or "cloud" service?
I don't see what the problem is.
And my economist cousin keeps telling me "Get out of the stock market!".
just saying.
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I was thinking along the same lines.
I think I should pitch my cloud-based, distributed, agile developed MMO with integrated social media platform.
Did I miss any important buzzwords? I'm pretty sure we can cram them into that somehow.
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Does it collect user information for optimizing ad revenue using Big Data?
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(scribble)
Now it does!
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VCs think they are kingmakers (Score:1)
Instead they come off looking like parasites. Why should we have to play games just to get to the point we're even considered for funding?
Re:VCs think they are kingmakers (Score:5, Insightful)
The typical VC isn't looking to build a long lasting business, their goal is to make a company look big and promising by whatever means neccessary then cash out by selling their shares to whoever. They are professional pump-and-dumpers, hence the sobriquet 'vulture capitalists'. I'd imagine in an environment with less ready money floating about for them to offload their investments there would be fewer of them.
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VCs are the epitome of Web 2.0
You make the content.
I make the profit.
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You could always go get a loan from the bank if you dont want their money?
Whats that, the bank is interested in risking $50 million? Fascinating.
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Because they are - unfortunately.
Money talks and bullshit with money talks.
Get over it.
I have.
When i see an IPO, I just think, "There go the suckers!"
And on the very very very very ^n rare times they actually hit big, I just think, "They should have bought lottery tickets. The odds are probably better." and the VCs, Wall Street pukes, lawyers, etc ... don't skim off off of the top - just the tax man - and I can live with that.
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Instead they come off looking like parasites. Why should we have to play games just to get to the point we're even considered for funding?
It's not like anyone owes you anything. It's their money - they don't have an obligation to give it to you.
If you don't want to jump through the hoops any particular venture capitalist is requiring, then don't. No one is forcing you to do anything. You can always just forge ahead with your own money.
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But I have RIGHTS!
Give me happiness and stuff. NOW!
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My idea sucks but I won't admit it.
Basic issue (Score:3)
Tech venture capitalists typically want to cash out fast by having their investments sell to {Google, Facebook, Microsoft, Yahoo, etc} and those companies typically don't want to go outside the Valley because integrating a remote team is hard. Also, the VC's don't want to go outside the Valley because checking up on their investments if they're the other side of the world is hard. Result: if you can't be reached by driving down the US-101 for an hour then it suddenly gets much harder to get huge piles of venture capital and if you don't have that, there is a serious risk you will end up being out-spent or out-integrated by a company that does.
Entitlement (Score:2, Flamebait)
I came here hoping to see slashdotters opining on how startups are entitled to VC money, and how VCs are greedy fat cats.
Please dont disappoint me, folks.
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I came here hoping to see slashdotters opining on how startups are entitled to VC money, and how VCs are greedy fat cats.
Please dont disappoint me, folks.
Damn those VC's, doing their stupid due diligence when they risk enormous amounts of money on unproven technology. Money wants to be free!
Tech != internet (Score:5, Insightful)
When did the word "tech" become synonymous with a internet dot.com business? Must've been the late 90's.
Time to move on and realize technology encompasses more than just "doing ____, but on the internet!"
Internet has been a good thing but the downside has been that it absorbed too much money that could've gone int real tech like fusion and space rockets.
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Wow (Score:1)
Promising tech start-ups have a series of hoops to jump through including brief pitches.
A "brief pitch" - Damn that's tough.
Skype? (Score:2)
I find it interesting that Skype was mentioned next to Netscape and Salesforce.com. Skype is a European company, which was founded in Estonia by a Dane, a Swede and several Estonians. Did it really receive funding at any of these events - let alone Demo Europe?
Skype was founded in 2003 by Janus Friis from Denmark and Niklas Zennström from Sweden. The Skype software was developed by the Estonians Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, who together with Friis and Zennström were also behind t