Robert Marcus, CEO and Chairman of QuantumWave Capital
In light of the article that has been published following my interview with Computing.co.uk yesterday, I would like to clarify that neither the headline nor much of the characterization reflect my view or that of QuantumWave Capital. I have always been and will continue to be willing to supply intelligent, balanced and insightful comment to the media, but in this case my comments were taken out of context.
During my interview, I mentioned that the global economic crisis and the contraction of capital markets, combined with changes in the regulatory regime, have made the public markets largely inaccessible to early-stage companies, thus limiting the traditional Silicon Valley exit and recapitalization model of IPO.
The lack of the growth capital so essential to revenue and market expansion and medium-to-long-term independence, suggest an alternative approach, to be acquired early by a larger company. The headline, “Tech City startup dreams are ‘a complete myth,’ ” makes it sound as if the dream of success is a myth, when what I was saying is that the route to success has changed. Selling to a larger company is a good thing. It reduces the amount of startup capital required; it reduces the risk of failure considerably; and it enables founders to cash out sooner and move on to other interesting ventures. And of course it benefits the acquiring company, which obtains technology far faster than via in-house R&D. And many jobs are created in the process. A virtuous circle.
What I actually said was that Tech City is a great success-story, a rare example of sensible public – private partnership, a terrific incubator of innovation for the mobile internet that will create dozens if not hundreds of successful companies, and many thousands of jobs.