Thursday, May 22, 2008

VCs: Investors overlook Nashville's claim to fame

A panel of VCs led by moderator and former U.S. Senator Bill Frist (at left) yesterday told more than 450 Nashville executives that while there's lots of cash sloshing-around, few investors in major money centers have Nashville on their minds. Moreover, the investors most deeply involved in technologies are happily ignorant of Nashville's four-decade-old services track record. Frist, himself now a Cressey door-opener for entrepreneurs, VCs and investment bankers, said investors' ignorance of Nashville is a problem community leaders will need to address. In the interim, all agreed there's no help coming locally: While we have a great Angel community, there are no mid-market players in technology, whereas would-be investors like to follow a big lead investor. Unfortunately, entrepreneur Kin Clinton (at right) makes clear in our story that his Woolsthorpe Technologies (Brentwood) may not be able to wait for local investors to step forward, and may need to move his company to one of the Coasts or to somewhere like Alabama. For those of you hoping funding your developing or startup company will get easier: VC Allen Moseley said, "it's still credit cards -- believe it or not -- it's still friends and family, and it's [still] a lot of stress on the entrepreneur" that makes it happen at the git-go. Read the full story here.

1 comment:

Francine Hardaway, Ph.D said...

I have been singing this song about Phoenix for forty years, and finally decided to buy a house in the Bay Area so I can go back and forth and make contacts. It is a shame that money is concentrated, but it is, and no investor wants to be far from the money. (