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An interesting, inside view of the belly of the beast that gave us the hi-tech bubble.
1 posted on 09/06/2001 5:44:21 AM PDT by buaya
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To: buaya
I have been involved with various R&D projects for about 15 years. This article nails it to a tee. Thanks for posting it.
2 posted on 09/06/2001 5:53:48 AM PDT by Movemout
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To: buaya
Sign posted in the engineering department of a firm where I once worked:

"UNTIL MORALE IMPROVES, THE BEATINGS WILL CONTINUE!" </font size=5>

3 posted on 09/06/2001 6:02:22 AM PDT by Dick Bachert
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To: buaya
Very eye opening essay. I think another point is the "all the eggs in one basket" syndrome. Would it not be a good idea to have more than one VC? that way they can't jerk you around as much. Just a thought.
4 posted on 09/06/2001 6:07:05 AM PDT by det dweller too
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To: buaya
From another list:

Subject: Understanding Engineers

Understanding Engineers - Take One

Two engineering students were walking across campus when one said, "Where did you get such a great bike?" The second engineer replied, "Well, I was walking along yesterday minding my own business when a beautiful woman rode up on this bike. She threw the bike to the ground, took off all her clothes and said, "Take what you want." The second engineer nodded approvingly, "Good choice; the clothes probably wouldn't have fit."

Understanding Engineers - Take Two

To the optimist, the glass is half full. To the pessimist, the glass is half empty. To the engineer, the glass is twice as big as it needs to be.

Understanding Engineers - Take Three

A pastor, a doctor and an engineer were waiting one morning for a particularly slow group of golfers. The engineer fumed, "What's with these guys? We must have been waiting for 15 minutes!" The doctor chimed in, "I don't know, but I've never seen such ineptitude! " The pastor said, "Hey, here comes the greens keeper. Let's have a word with him." [dramatic pause] "Hi George, say, what's with that group ahead of us? They're rather slow, aren't they?" The greens keeper replied, "Oh, yes, that's a group of blind firefighters. They lost their sight saving our clubhouse from a fire last year, so we always let them play for free anytime." The group was silent for a moment. The pastor said, "That's so sad. I think I will say a special prayer for them tonight." The doctor said, "Good idea. And I'm going to contact my ophthalmologist buddy and see if there's anything he can do for them." The engineer said, "Why can't these guys play at night?"

Understanding Engineers - Take Four

There was an engineer who had an exceptional gift for fixing all things mechanical. After serving his company loyally for over 30 years, he happily retired. Several years later the company contacted him regarding a seemingly impossible problem they were having with one of their multimillion dollar machines. They had tried everything and everyone else to get the machine to work but to no avail. In desperation, they called on the retired engineer who had solved so many of their problems in the past. The engineer reluctantly took the challenge. He spent a day studying the huge machine. At the end of the day, he marked a small "x" in chalk on a particular component of the machine and stated, "This is where your problem is". The part was replaced and the machine worked perfectly again. The company received a bill for $50,000 from the engineer for his service. They demanded an itemized accounting of his charges. The engineer responded briefly:
1. One chalk mark ................$1
2. Knowing where to put it...$49,999
TOTAL $50,000
It was paid in full and the engineer retired again in peace.

Understanding Engineers - Take Five

What is the difference between Mechanical Engineers and Civil Engineers? Mechanical Engineers build weapons. Civil Engineers build targets.

Understanding Engineers - Take Six

"Normal people ... believe that if it isn't broke, don't fix it. Engineers believe that if it isn't broke, it doesn't have enough features yet." ------- Scott Adams, The Dilbert Principle

Understanding Engineers - Take Seven

An architect, an artist and an engineer were discussing whether it was better to spend time with the wife or a mistress. The architect said he enjoyed time with his wife, building a solid foundation for an enduring relationship. The artist said he enjoyed time with his mistress, because of the passion and mystery he found there. The engineer said, "I like both." "Both?" Engineer: "Yeah. If you have a wife and a mistress, they will each assume you are spending time with the other woman, and you can go to the lab and get some work done."

Understanding Engineers - Take Eight

An engineer was crossing a road one day when a frog called out to himand said, "If you kiss me, I'll turn into a beautiful princess". He bent over, picked up the frog and put it in his pocket. The frog spoke up again and said, "If you kiss me and turn me back into a beautiful princess, I will stay with you for one week." The engineer took the frog out of his pocket, smiled at it and returned it to the pocket. The frog then cried out, "If you kiss me and turn me back into a princess, I'll stay with you and do ANYTHING you want." Again the engineer took the frog out, smiled at it and put it back into his pocket. Finally, the frog asked, "What is the matter? I've told you I'm a beautiful princess, that I'll stay with you for a week and do anything you want. Why won't you kiss me?"The engineer said, "Look I'm an engineer. I don't have time for a girlfriend, but a talking frog... now that's cool.

5 posted on 09/06/2001 6:16:09 AM PDT by tacticalogic
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To: buaya
bump
6 posted on 09/06/2001 6:16:29 AM PDT by Red Jones
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To: buaya
A free market means a free stock market. The VC firms are vital for one key reason ... they are the gatekeepers to the investment firms and banks that have sole control of the Stock Market. The SEC throws up too many barriers for anyone else to sell public stock, to establish other markets.

It was, and should be again, that should a small start-up need fuinding, they write up a simple prospectus, advertise their offereing and go door to door in the neighborhood selling shares. The first company I worked for had started up in the late-forties doing exactly that.

For answering the door bell and risking only a few hundred dollars for a hundred shares, many local folks later bought Caddies and new home additions some years later.

7 posted on 09/06/2001 6:18:28 AM PDT by bvw
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To: Donald Stone
A day late, & a dollar short maybe; but there're some very interesting, sage points here that'll shed some light on your experience...good, bad, or indifferent.

Hell. This article is mainly about honest people; only slightly touches the area(s) of your "expertise."
You're certainly in an excellent position to write an article all your own on one facet of this process, eh? {g}

8 posted on 09/06/2001 6:20:29 AM PDT by Landru
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To: buaya
Accurate article. Besides the VC's, there are a number of former executives and founders of some companies who's names you would recognize that have made a nice living of lending their "good name" to deals. They use some of the same techniques as VC's but basically bring in their "gang" and a few bucks, suck in private placement funds then pump and dump. Then it's off to Aspen in the new jet or maybe to the next founder/sucker.

Thanks for posting this.

12 posted on 09/06/2001 6:39:53 AM PDT by isthisnickcool
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To: buaya
Anybody have a source for a list of VC's? I want to start my own consulting practice again and I need a partner. I am not willing to work for those Politically Correct, Liberalized Consulting companies anymore. It makes me ill to be around them. And they don't like me much either. My competency, personal values and integrity seem to annoy them.

Search4Truth

CRM Consultant Resume' for Alex J. Azar III

13 posted on 09/06/2001 6:48:19 AM PDT by Search4Truth
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To: buaya
The author could have been describing my current employer.
16 posted on 09/06/2001 7:03:27 AM PDT by gieriscm
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To: buaya
FWIW, I worked on Wall Street for 7 years before becoming a computer programmer, and the way I see, some people are interested in solving problems and creating/fixing things, and other people are interested in making money. Both types are necessary, and one is not better than the other, but that's just the way it is.
18 posted on 09/06/2001 7:15:48 AM PDT by ConservativeNJdad
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To: buaya
Anyone know any good VC's that get into the restuarant industry?
19 posted on 09/06/2001 7:18:28 AM PDT by Phantom Lord
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To: buaya
Good stuff. C++ a fad? Say it ain't so?! </sarcasm>
22 posted on 09/06/2001 7:25:08 AM PDT by VoodooEconomist
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To: buaya
bttt
26 posted on 09/06/2001 7:41:25 AM PDT by PatrioticAmerican
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To: buaya
Right on!

I never raised venture capital for my company. Never needed it. Never will. The cost of working with these guys is just too high.

31 posted on 09/06/2001 9:37:28 AM PDT by cicero's_son
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