People in Glasshouse.....

Went to the Glasshouse "Show me the money" event last night, VC Nic Brisbourne from DFJ Esprit, Michael Birch (who sold Bebo at top of market, see the AOL-Bebo Value Transfer Equation here) and banker Andreas Lazar (Allen & Co) were cajoled by Rory Cellan Jones into showing us their wads. Here are my notes of the responses to the questions put by Rory, Audience etc:

1.Climate for Investment

Nic - UK Investment c £100k per quarter, when good times return then big co's will buy startups again - its a cyclical industry

Michael - Now fewer people lending. If able to pursue a business without money far better

Andreas Good time for Allen to start up in London, lots of requirements for advice. Different crash to dotcom as there is no loss of confidence in tech this time but it's a bigger crash impacting capital - but funds are being raised. Deals are going to businesses with clear paths to making money. (Anyone remember the P2P drumbeat in 2001 - where P2P = Path 2 Profits)


2. Investments

Nic - invested in Graze (food), William Reeve (ex Lovefilm, trusted and known) is chairman

Michael - invested in Tweetdeck because it had Tweet in it (option theory investment)

Andreas - make personal investment in people he knows who are successful. Recently invested in a Patent business system (didn't catch the name).

(I wanted to ask re overconfidence in previously successful people eg Zennstrom et al and Joost, but Rory did it for me - but this isn't going to change in a hurry, its like no-one getting fired for buying IBM )


3. Angels and their role

Once companies get off ground it's helpful to have institutional investors ( Andreas)

Birch's new fund is "between Angel and VC", seem to still be making it up a bit as they go.


4. Paul Carr's view on Web 2.0 and the London wasteland?

Nic - London is growing, was nothing 10 years ago

Andreas - Allen voted with feet (set up in London in 2008), and SV VC's are now investing in UK and Europe

Michael - lots going on in London but Valley still bigger


5. A Rallying Call for eager Entrpreneurs?

Andreas - figure out how to make money in biz plans

Michael - try not to have to raise money


6. People still need to go to US? Are there other routes to valuation?

Birch - look at the stages - no point if small as no one will give you money


7. How do you value businesses with no revenues?

Andreas - need to explain how you make money


8. What's the % take and investment size from panel members

Andreas - Allen & co - £15m and 5%

Michael - between Angel and VC - (iirc he said £250k and up?)


9. What dotcoms would you resurrect now, ie they were ahead of their time?

Nic - Very seldom is the successful company the first one into space

Andreas - most good dotcom ideas have now been done


10. Current Exciting Stuff

Michael - music

Andreas - virtual goods

Nic - businesses that do good things and e-Commerce plays with high growth potential


11. Any deals where founders claw back equity on achievements?


Nic - no, ratchets are a sign of poor initial valuations

Some of Rory's question pitches were very funny, he's good value. Good speakers, good compere, nice place. As to the Glasshouse's own business model, the "Show Me The Money" ploy was clear - only one free drink and no nibbles for a paid evening event