Daily VideoOctober 10, 2008
Silicon Valley Tries to Weather the Economic Storm
While global financial markets are dropping and most business is slowing in the United States, many in optimistic Silicon Valley are still not very worried.
Credit markets are drying up, but venture capital money often comes from wealthy individuals and institutions, not from banks and the credit market, so venture capitalists can still lend because their money comes from private funding. While venture capitalists will have to be more choosey in their investments many startup projects are still finding funding.
But Silicon Valley is not completely insulated from the market and some say that the lack of credit may start hurting businesses there too; a new report puts venture capitalist confidence at a four year low.
“From an entrepreneur’s point of view, I’m not hitting the panic button.” Ashok Narasimhan, Startup CEO
“It’s the sector where the U.S. is still — still has an advantage on a worldwide basis. So, in the short term, yes, everyone’s boat is going down in the water, but, ultimately, the growth sectors tend to recover faster.” Peter Rip, Venture Capitalist
“I think, fundamentally, the way that Silicon Valley has traditionally made money, in the form of selling stock to the public in an initial public offering, or in the form of companies merging, has changed due to a lack of access to capital…in last quarter, there wasn’t a single venture capital-led initial public offering.” Jon fisher, University of San Francisco
Warm Up Questions
1. What is Silicon Valley? Where is it?
2. What is venture capitalism? Can you name any famous venture capitalists?
1. Do you think that the people in Silicon Valley should be optimistic? Why or why not?
2. Imagine you are a venture capitalist, what kind of projects would you be funding?
3. Imagine you are an entrepreneur, how would you make your case that you should be funded over other projects?
Tooltip of related stories
Tooltip of more video block
Submit Your Student Voice
Born and raised in Queens, New York, to a family of privilege, Donald Trump grew up in a 23-room house and was driven to private school by the family chauffeur. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
Republican presidential nominee Donald Trump chose Indiana Gov. Mike Pence as his vice president, despite the two disagreeing on a number of political and social issues. Pence has served as governor of Indiana since 2012, and a member of the U.S. House of Representatives for 12 years. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
The 2016 presidential race has made teaching high school civics more difficult, particularly regarding some of the comments students have heard candidates make along the campaign trail. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
With the Republican National Convention set to begin next week in Cleveland, Ohio, much attention is focused on whom the candidates will choose as their vice presidential running mates. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
Recent police-related events in the U.S. have many Americans seeking ways to improve racial tensions throughout the country. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld