Pitch Johnson Opens TEC International Startup Conference (Dec 6,2011)

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Details at http://www.tecglobal.org

Mr. Franklin Pitcher ("Pitch") Johnson was co-founder in 1962 of Draper and Johnson Investment Company, venture capital company, and became an independent venture capitalist in 1965 as the founder of Asset Management Company. Asset Management Company has made over 250 venture investments during its more than 43 years of operation. These have included Amgen, Applied Bio Systems, Applied Micro Circuits, Conductus, Hybritech, IDEC Pharmaceuticals, Octel, Qume, Red Brick Systems, Remedy, Sierra Semiconductor, Tandem Computer, Teradyne and Verity. He was a director of many of those companies and is presently a director of three private companies, and a public investment fund operating in eastern Europe.

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Pitch Johnson Opens TEC International Startup Conference (Dec 6,2011)

  1. 1. TEC International Startup Conference December 6 th 2011 Pitch Johnson Asset Management Company, Palo Alto
  2. 2. ENTREPRENEURSHIP AND ECONOMIC FREEDOM <ul><li>Entrepreneurs Introduce Revolutionary Technology to Markets </li></ul><ul><li>An Entrepreneurial Climate is Vital </li></ul><ul><li>Entrepreneurs are the Product of Economic Freedom </li></ul><ul><li>Creation of Innovative New Ventures </li></ul><ul><li>Personal, Political and Economic Freedom are Inseparable over Time </li></ul><ul><li>New Directions for Entrepreneurship and Venture Capital </li></ul>
  3. 3. <ul><li>Entrepreneurs Introduce Revolutionary Technology to Markets </li></ul><ul><li>A. Innovation is a much driven as much by markets as by technology. </li></ul><ul><li>B. Venture capital has little meaning without entrepreneurs. </li></ul><ul><li>C. Venture capitalists help entrepreneurs in three primary ways </li></ul><ul><ul><li>1. Providing capital for formation and growth </li></ul></ul><ul><ul><li>2. Giving advice and guidance </li></ul></ul><ul><ul><li>3. Sharing and supporting the competitive nature of entrepreneurs </li></ul></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  4. 4. <ul><li>II. An Entrepreneurial Climate is Vital </li></ul><ul><li>A. System of laws to form entities, and to protect property and contracts </li></ul><ul><li>B. Strong Educational System </li></ul><ul><li>C. Fund of Talent and Knowledge </li></ul><ul><li>D. Few restrictions on forming companies and choosing markets to serve </li></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  5. 5. <ul><li>II. An Entrepreneurial Climate is Vital (cont.) </li></ul><ul><li>E. Availability of venture capital </li></ul><ul><li>F. Availability of commercial and investment banking services </li></ul><ul><li>G. Access to public markets and liquidity </li></ul><ul><li>H. Acceptance of entrepreneurs in society </li></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  6. 6. <ul><li>Entrepreneurs are the Product of Economic Freedom A. Need to serve markets they choose B. Free to choose the technologies they want C. Investors need to back companies in markets and technologies with people they believe in D. Governments can aid the process, but must avoid being controlling </li></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  7. 7. ENTREPRENEURSHIP AND ECONOMIC FREEDOM <ul><li>IV. Creation of Innovative New Ventures A. Within or outside of existing organizations B. Developing an Innovative Mentality 1. Steve Jobs as an example 2. Emphasize markets and be alert to technology to serve them 3. Size matters C. Give marketing-engineering teams latitude D. Make product introduction a major event E. Plan cash flow conservatively </li></ul>
  8. 8. <ul><li>V. Personal, Political and Economic Freedom are Inseparable over Time </li></ul><ul><li>A. Entrepreneurs challenge existing structures </li></ul><ul><li>B. New wealth and power is created </li></ul><ul><li>C. Political and personal freedoms succeed when new generations can move ahead </li></ul><ul><li>D. New technology and new markets thrive with entrepreneurs leading the way. </li></ul><ul><li>E. Entrepreneurs are the revolutionaries of our era </li></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  9. 9. <ul><li>VI. New Directions for Entrepreneurship and Venture Capital </li></ul><ul><li>A. Entrepreneurs start the process and are the driving force </li></ul><ul><li>B. Old areas continue as important; social networking is a bridge to the new </li></ul><ul><li>C. New era has been called “The Creative Economy” by Paul Saffo </li></ul><ul><li>1. Production Era, Marketing Era, Creative Era </li></ul><ul><li>2. Companies where small user-inputs create great total value </li></ul><ul><li>3. Make input easy and in small units </li></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  10. 10. <ul><li>VI. New Directions for Entrepreneurship and Venture Capital (cont) </li></ul><ul><li>D. Portable Devices and products related to them will be dominant </li></ul><ul><li>E. Medical Entrepreneurs have great opportunity with great problems </li></ul><ul><li>F. Venture capitalists have to anticipate the changes and change themselves </li></ul><ul><ul><ul><li>1. Think of changing markets made available by </li></ul></ul></ul><ul><ul><ul><li>technological change </li></ul></ul></ul><ul><ul><ul><li>2. Sensitivity to market by age </li></ul></ul></ul><ul><ul><ul><li>3. Pick an area or two or market expertise and focus </li></ul></ul></ul><ul><ul><ul><li>4. Fund size and attention to problem </li></ul></ul></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  11. 11. <ul><li>VI. New Directions for Entrepreneurship and Venture Capital (cont) </li></ul><ul><li>G. National policy issues </li></ul><ul><li>1. Education to keep equal-opportunity </li></ul><ul><li>2. Taxation of capital gains and all taxes of young companies </li></ul><ul><li>3. Ability of needed people to remain in or enter the country </li></ul><ul><li>H. Some things are not changing much </li></ul><ul><li> 1. Three functions of venture capital; capital, consulting and commitment </li></ul><ul><li>2. Character of entrepreneurs is first criterion among many </li></ul><ul><li>3. Creating opportunities for liquidity </li></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM
  12. 12. <ul><li>Thank you, </li></ul><ul><li>Pitch Johnson </li></ul><ul><li>[email_address] </li></ul><ul><li>Asset Management Company </li></ul><ul><li>Palo Alto, CA </li></ul>ENTREPRENEURSHIP AND ECONOMIC FREEDOM

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