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Eric Young, Canaan Partners co-founder, on the continuing growth of the technology sector and investing as a venture capitalist.
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The overall economy is still struggling in the tech sector is booming with numerous companies going public although we know FaceBook is not gonna go public anytime soon it's starting to feel a lot like 1999 all over again with all the roller coaster ride.
Our next guest has helped launch.
-- -- market leading technology companies and He says that the sector is still growing venture capitalist Eric Young -- and partners co-founder.
And general partner joining me now Eric thank you for joining us on the show.
My pleasure -- it's good to be here.
I wanna ask you right -- that we just sky news in the Financial Times saying that FaceBook is.
Postponing its IPO until late 2012.
What's your read on that.
Well for starters -- is not an investor and FaceBook we don't have access to any inside information so.
You know -- the anything that I would say here is is purely speculation.
You know my impression is -- we have a number of companies in our portfolio.
That have you know similar characteristics to Facebook.
Online Internet social very rapid growth very exciting stories.
You know a number of these companies are really in no hurry to monetize you know to go public to cash out.
The nature of the opportunity -- dressing is so large and -- so much room to run so to speak in terms of building substantial companies and large enterprise value.
That you know our feeling -- -- and then and I suspect those of of other investors at FaceBook and elsewhere.
Are feeling like you know what's the rush.
As long as we're still growing revenues and building value.
There's no need to.
Run to the window right you know taking the company public is an event.
It's not an outcome.
You make a great point -- because in my leading to you we talked I talked about.
It being 1999 again in one thing that's different between now and certainly back then is this lack of -- going into the market so.
Did indicate some level of stability.
That exists and with these companies that we.
Talk about being start up but not -- being start -- -- names like FaceBook and Twitter are very well established.
It's one of the defining characteristic sad -- is different today vs ten more than ten years ago.
Absolutely you know ten years ago in 1999.
During the the height of the first Internet ball or the bubble -- you well.
You know there was an awful lot of speculative investing going on by venture investors individuals.
Large institutions for that matter.
Based upon concepts.
You know these were all prospective business models that were supposed to grow in the future in become profitable some point.
And and today the difference is there are a number of companies that have very substantial revenues being generated.
To some extent off of advertising to some extent off of subscription revenue or virtual goods.
There's a number of different means within the world of our line.
Activity.
But.
That that the Internet has become.
So prolific so widely used so accessible in the US and elsewhere you know the worldwide growth is just phenomenal.
-- -- -- -- Good -- and I mean starter interrupt you with thirty seconds left I wanna -- the united some markets go up and down year and a longstanding venture capitalists.
How does here perspective and your investment approach change in light of what's happening with that public markets are does it.
It doesn't at all Larry -- and is an early stage investor.
We get in right at the outset our companies take years to develop into you know a business model which we can either take public or have acquired for strategic value.
So frankly times like this are some of the best times to invest.
We really don't change our new investment activity behavior at all based upon you know public market activity.
So you know the tech sector.
We invest in both tech and healthcare is very vibrant right now and you know our expectation is that the outcomes will be realized a number of years down the road from today well -- All of this uncertainty in all -- assuming -- it is nice to hear about vibrant pockets and this economy.
Thank you very much Eric Young Canaan partners co-founder and general partner.
You're welcome.
