Global Themes

On Globalization & Venture Capital

Contrarian strategies & a “global heat-seeker”*

In a post on Intel’s new global investment strategy, EETimes Chief Editor, Richard Wallace remarks that, “Venture capitalists, however, tend not to be very global in their outlook, or their capital placements”.

I will comment on that another time (the former is probably not true anymore while the latter may still be the norm – for very good reasons)…nevertheless, this excerpt from Richard’s post is thought provoking:

“My read is this: when it comes to venture capital investing in the high technology sector, Intel is going global, and as goes Intel, so goes the globe.

So a good contrarian investment strategy to the 20-minute rule would be to keep a close eye on the emerging technologies and the emerging markets that Intel invests in.

You may also want to jump on to this post: 20-minute rule & the Global Entrepreneur 

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* This is Richard’s label – neat!

April 3rd, 2007 Posted by | Emerging Markets | 3 comments

3 Comments »

  1. Intel is one of the 3 large US businesses currently being investigated by the European Commission. The other two of course are Microsoft and now iTunes.

    Should everyone be afraid, very afraid?

    (Yes, I know it is a facetious remark, but just could not resist the reference to ‘heat-seeking’. Heat could signify both activity and hell..)

    Comment by Shefaly Yogendra | April 3, 2007

  2. The European Commission does tend to have a “keep your monopolistic junk out of my country” attitude. The EU isn’t the only place either–as evidenced by the onslaught of Linux systems spreading across China (which also happens to harbour the biggest collection of Microsoft pirates in the world). I guess it’s a love-hate relationship. We want it some of the time–but not all of the time, everywhere.

    Brian d’Eon
    http://www.deonweb.com

    Comment by Brian d'Eon | April 3, 2007

  3. Though past two comments have focused more on how big corporates moving to China for some obvious reasons.

    But facts of economic scaling/balancing also play a big role besides large consumer base and demand in these emerging countries (e.g. China/India), after all companies have to improve ROI!!

    When doing chip cost skyrockets with new geometries of processes these guys have have to lof course look for cost effective and market rich places to expand their businesses and product lines setup. A

    Aand China/India rank high on those parameters.

    From ROI point of view this article (link at the end of this comment) will tell u that on 45 nm and 35 nm to improve ROI these companies will think definitely for China to lower cost and bump up ROI when process cost doesn’t tapper down fast enough.

    Interesting link on discussions about “Costs cast ICs into Darwinian struggle” is : http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=198701495

    -Loken

    Comment by Loken | April 18, 2007

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