Wednesday, February 25, 2009

Silicon Valley ghost town




Here is the most shocking evidence I've seen so far about the economic downturn. I snapped these photos at a key tech intersection in Mountain View, California. A close-up look inside the windows of the many buildings that make up this former Hewlett-Packard campus showed not a soul--just lots of empty cubicles. Anyone who is at this campus today is not a customer. Instead, it's used mostly as a quiet place to walk among the tall trees. This is far from the only silent spot in the Valley today. I spotted LOTS of for lease signs like this one pictured.
I will be posting more soon about the transformation of Silicon Valley.

Monday, February 16, 2009

Doing Business in China: Toronto












I've just returned from a visit to Toronto--my fourth trip to Canada in six months! The fun began as soon as I boarded the Porter Airlines propellor flight from Newark Airport direct to the City Center airport, which is appropriately named. The VIP treatment for even economy passengers included being wined and dined during the flight--at no extra charge. At the airport, it was a two-minute ferry ride to the main land, then a hop to my hotel. A change of clothes and I was off to my first appointment, at law firm Gowlings, where I gave a presentation about my book, Silicon Dragon, for the many China-interested partners and their clients. See left photo: Gowlings partners Martin Cauchon, Catherine Pawluch.
Next up was an elegant dinner at a private dining room of a local restaurant, Kultura, hosted by Craig Brown and his law firm Fasken Martineau. The conversation centered on tales of China experiences by the well-traveled group of finance executives.
The next morning, I was up by 6:30AM to get ready to speak at the University of Toronto-Rotman School of Management. By 8AM, the lecture room was full and we had a lively Q&A with students, professors, government officials, bankers, and investors. I autographed plenty of books before my next stop -- to meet the mayor of Waterloo, Brenda Halloran. Waterloo is famous for being the home of Research in Motion (Blackberry). The mayor is a China advocate and would really like to see her community do more business there. (See mayor to the far right in photo above).
A Chinese lunch followed by a stop to meet with representatives at the local chamber of commerce, and we were off to the University of Waterloo and its school for business, entrepreneurship and technology. I kept my talk to 10 minutes to have time to show my videos with Chinese entrepeneurs who are profiled in my book. I was impressed with the calibre of the students and their desire to be tech entrepreneurs themselves!
I'd like to thank the Canada China Business Council, director Sarah Kutulakos, and her team (Tony Gostling, among them), for arranging this whirlwind Toronoto stop on my book tour. Sarah is with me in the photograph with the mayor. Tony is in the photo at Gowlings. Thanks too to my hosts Fasken Martineau and Gowlings, and the universities for showing their support.
I hope to return sometime soon. I must say that Canada is very pro-active when it comes to China!


Friday, February 6, 2009

Forbes Midas list: China counts

Forbes Midas list: China counts

Forbes Midas list: China counts

What's interesting about the Forbes Midas list, http://www.forbes.com/2009/01/29/venture-capital-midas09-technology_0129_midas_land.html is the number of venture capital partners who rank tops even though their firms are having troubles in China.
John Doerr of Kleiner Perkins Caufield & Byers http://www.forbes.com/2009/01/29/venture-capital-midas09-technology_0129_midas_land.html places first on the top 100 list while the firm's China practice is riding a wave of partner defections. It was Doerr who announced the firm's China expansoin at a press conference in Beijing during April 2007. Three partners have left KPCB China since then: Joe Zhou to form his own fund, David Su to join Matrix Partners and most recently, Ian Goh. That leaves Tina Ju, the highly capable venture partner, as the glue of the China operation. http://www.kpcb.com/china/english/team While she has had notable success with Chinese search engine Baidu and e-commerce site Alibaba, http://www.amazon.com/Silicon-Dragon-China-Winning-Tech/dp/0071494472 those were deals she invested in at her predecessor venture firms before teaming up with KPCB in April 2007. It's early days and the market has toughened, but KPCB China doesn't have a winner among its portfolio yet.
Not to pick on Kleiner. Sequoia Capital scores with four partners on the list, but that standing doesn't reflect the firm's turbulent time in China. Fan Zhang, a co-founder of the China shop, recently resigned. That came after his co-founder, Neil Shen, was sued by the Carlyle Group for “stealing” a deal from them.
Now comes Bessemer Venture Partners. The firm has six partners on the list, yet Bessemer just gave up in China. See my earlier posts on this subject.
I'm convinced that Forbes could use more China perspective in its selection process next year. I do credit Forbes for changing its methodology to reflect more recent deals of the venture partners. Still, the five-year window on the partners’ deals makes for some odd picks, and sometimes outdated ones too. Several venture capitalists I know in China show up as perennials when their deals seem ancient – at least in the fast-paced Chinese venture community.

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