Let's Get It Started.

Pran Kurup ([email protected])
Sun, 9 Nov 1997 16:16:41 -0500



Hi Guys,


Here's the kick-off to the Venture Capital Special Interest Group.
Firstly contratulations to Pran and all the others at SIPA for doing a
wonderful job organizing the Venture Capital Talk on Sat Nov 8. It was
the first time I had attended a SIPA talk and I cannot compare it with
the others but per se this was a wonderful effort. Also I don't know
if everyone is aware, but from my experience SIPA really means what
they say, 'cause when I evinced interest in starting a venture capital
group, Pran & Co. moved at lightening speed and before I could say
"Venture Capital," the page had been designed. Once again SIPA, very
impressive!!!

Anyway so much for the introductions.


Did you'll know that the Bay Area has the largest conglomeration of
Venture Capital firms, in all of the US. I found this out under
strange circumstances. The truth of the matter is that I am a
LA/NYC/Chicago/Boston type of person and being a financial person, I
logically figured that the above cities, having a strong financial
services backbround would obviously have the largest VC firms, but I
was wrong. My squash partner got fired from his VC firm ( no big
deal--hiring and firing is a part of the deal), and being a keen
squash player he logically was excited because now he could look for a
job in LA/NYC/Chicago/Boston, where the squash facilities are better
too. But turns out that when he did an actual count of VC firms the
ratio of the Bay Area to the rest of the US was 1081:23!!!!

Sure enough he is now gainfully employed in a VC firm in the Bay Area.
VC's gain is squash's loss. I'm not complaining as I still have my
squash partner.

But on a serious note that is the honest truth of the matter! We are
sitting here on a VC hotbed .

Also being a mutual fund analyst, did you guys know that there is a
strong connection between mutual funds and VC. How's that ? Well
mutual funds invest people's money into securities to churn out a rate
of return. Precisely, so instead of investing into stocks, bonds,
t-bills i.e. the traditional modes of investment, they are now
investing in start -ups, especially technological start - ups, for a
rate of return, which in my opinion could far outweigh the rate of
return produced by the Dow and the S&P 500.

Also the major projects funded by the VC group's here in the Bay Area,
is Computer Related and Health Care And Life Sciences Related.


Well so much for the start . Well guys and girls let us start pouring
those thoughts into our Special Interest Group.

In case of any questions you'll can contact me at [email protected].


Later


Vivek Kumar
KPMG San Francisco.

Tel : 415 - 961-0100 Ext. 7526