peHUB’s Connie Loizos has an interesting interview up with Martin D Pichinson, co-founder of Silicon Valley-based business consulting firm Sherwood Partners, on business looking good in the Valley on account of imploding Web 2.0 startups.
Excerpt:
Q. Where are these startups, and their backers, going wrong?
A. Well, you’ve got to start bringing in companies like Sherwood early to work with managers and help shave off costs. It’s all about extending the runway long enough that customers can absorb a product. Everyone comes up with this cockapoo about startups. It’s not about being smart. It’s about being around long enough.
Q. Cutting costs, negotiating better — these sound like business fundamentals that a startup’s VCs should be helping with.
A. This is what people don’t understand: decades ago, when a VC put money into a Cisco or HP and sat there and worked with them, they were managing a $2 million fund. Now, with funds the sizes they are, do VCs really have the time to work with all these companies when they don’t know which will be the winner? No.
Read the rest of the interview ‘A quick conversation with Silicon Valley’s ‘Undertaker” here.
Comments