Re: Bye-bye Ada ?

["Marin David Condic" <mcondic.auntie.spam@acm.org>]

Ole-Hjalmar Kristensen <oleh@vlinux.voxelvision.no> wrote in message
news:7vsmv0h24f.fsf@vlinux.voxelvision.no...
>
> The problem with maximizing the gains, which is probably the reason
> the vultures would like to change your plans, is that you also
> maximize the risks. This does not matter too much to the venture
> capitalists, because they spread their risk, one company in ten
> getting a real success is enough for them.
>
Agreed, but a couple of points: Even a venture capitalist doesn't want to
see the business fail. Sure they may go for greater risk, but they still
have a large amount of money invested in success and they want to protect
that too, so they aren't necessarily out to destroy what you are trying to
create.

Also, just a general rule of business - pick your partners very carefully
and get a lawyer. This is true if you've got a venture going with your best
buddy or with Engulf & Devour Venture Capital, Inc. In many respects, its
better to go into business with someone you *don't* have a trusting
relationship with - nothing gets assumed and you live by what's written down
in the contract.

Venture capitalists also come in many flavors - the more "formal" type that
have corporations that basically fund ventures, build them up and sell them
off and then you have the type where you simply have a rich guy looking for
something to put some money in. Even going to the bank for a loan is a kind
of "venture capital" in that they have some money at risk and will insist on
various safeguards, etc, that can be constraining on your business.


> Remember, their goal is not to maximize the probability of you getting a
profit.
>
Agreed. In business (as often in life) people's interests are going to be
different. What I hope to achieve is not going to be in lockstep with what
you hope to achieeve, so always beware when working with someone else in
risky endeavors and make sure you do the best you can to understand the
other guy's motivation.


> And yes, *I have* bad experiences with venture capitalists.
>
Lots of people have worked for companies that were taken over or otherwise
run by venture capitalists - myself included - and seen that they can easily
get ruthless in trying to make a profit. One wants to be very careful about
who one crawls into bed with.

My point was not really to make a case for going to venture capitalists. My
point was to indicate that Ada is going to be better promoted by those with
an interest in it if they start successful businesses that use Ada to build
their end products. How one gets the money to make that work is a very open
ended question. Personally, I've got some ideas for things I think could
make a good business and I'd like to find ways of making that work out. That
means you've got to leave the door open to all different sorts of paths to
make something grow - including possibly venture capitalists. But whether
you go to a venture capitalist or some large corporation that wants an end
product or your rich old uncle or the bank or even your prospective
associates, you've got to do some ground work to identify a market and do
some research and have a business plan that indicates a high probability of
success or you're just going to flounder.

MDC
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Marin David Condic
I work for: http://www.belcan.com/
My project is: http://www.jast.mil/

Send Replies To: m c o n d i c @ a c m . o r g

    "I'd trade it all for just a little more"
        --  Charles Montgomery Burns, [4F10]
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