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
More than 500 “March for Science” demonstrations took place around the U.S. and the world on Saturday in response to those who challenge widely-accepted scientific evidence and consensus. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
The U.S. and North Korea exchanged threats Monday after Vice President Mike Pence’s visit to the demilitarized zone between North an South Korea. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
West coast scientists are studying a deadly bat disease called white-nose syndrome after it spread to Washington state from the Northeast last year where it has killed more than 5.5 million bats since 2006. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
The Senate confirmed U.S. Supreme Court nominee Neil Gorsuch Friday in a 54-45 vote, following a contentious week of opposition from Democrats prompted Republicans to change Senate rules in order to push the vote through. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
The U.S. launched nearly 60 missiles aimed at strategic air force targets in Syria Thursday night in retaliation for the Syrian’s government’s use of chemical weapons which killed at least 100 civilians on Tuesday. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld