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Silicon startups get the squeeze

6/22/2009 06:00 PM EDT
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UdaraW
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re: Silicon startups get the squeeze
UdaraW   8/3/2011 4:57:25 AM
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Looking back from 2011, the article appears to be spot on in many points. While the cross-boarder investments may survive, in the long run, most of the silicon-based start-ups have folded and the remainder will fold pretty soon. The VC funds are rediscovering themselves, and I expect the energy and clean-tech sector to be the one absorbing the largest portion of the investor attention in the next decade. As the crude oil resources get inevitably dried-up, alternate-energy start-ups will gain momentum in the next few decades. Hopefully, most of our generation of EE will live to see the day that gasoline is no longer needed.

flemingo
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re: Silicon startups get the squeeze
flemingo   8/23/2009 7:22:25 AM
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I left the US company I had worked for 5 years and went to Shanghai to start up an IC design house for years ago, with only 3 million dollars funded by a local investor in China. Now, with $15m revenu and $2.5m net earning, it attracts the attention of other VCs. Why an IC design house in China can be more likely be profitable with much less money than in America? - pay much less for hiring smart local talents - more close to customers because large electronics OEMs are located in China, pluse some Chinese based companies like Huawai, Hair, etc. - Define products with better performance-to-price ratio. Customer will gradually accept local IC products rather than expensive chips from ADI, LTC, Maxim, NS, and TI. At least, I don't have to warry about my job and 401K right now.

rick merritt
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re: Silicon startups get the squeeze
rick merritt   7/1/2009 7:31:08 PM
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Thanks for chiming in, Gopal. I'd like to hear other experiences from silicon startups and their investors...how is this squeeze impacting you?

Umashankar
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re: Silicon startups get the squeeze
Umashankar   7/1/2009 3:27:58 PM
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If this situation continues, and volume game impacts technology growth, there seems to be a danger of stagnation. With only major players doing fab will all of world's fabless COs run to them some day and queue up those fabs (what abt time-to-market) ? In any way, time-to-market & volume play seem to be leading to a deadlock. What can possibly ease the situation?

anindya0
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re: Silicon startups get the squeeze
anindya0   7/1/2009 8:04:54 AM
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This story is very US centric. The author should make attempts to highlight how Indian, Chinese and other Asian startup's contribute and control their expenses to deliver products at much lower expenditure. Though the number of startups in these regions are lesser than what is in US, it is the bad habits of US startups (where the top honchos draw fat salaries or most of the expense is gone into purchasing EDA tools ) which has led to such conclusions being made by the VCs.

Gopal Miglani
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re: Silicon startups get the squeeze
Gopal Miglani   6/24/2009 2:08:11 AM
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I disagree with the numbers on software investment required to take the first 2 OEMs to market. With third-party pre-packaged software one can take OEMs to market in a fraction of the costs listed here. we have done this repeatedly for TV & STB SoC vendors. Gopal Miglani President, BitRouter TV & STB Software Solutions www.bitrouter.com

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