Archive for the ‘Levensohn Venture Partners’ Category

Getting From Here to There– It’s Time to Engage in Common Sense Approaches to Public Policy

I usually try to keep my blog posts short. Today I have failed in this endeavor but urge you to please read through to the end of this important post. The current issue of Foreign Affairs Magazine features an excerpt from Leslie Gelb's new book, Power Rules: How Common Sense Can Rescue American Foreign Policy.  This essay is exceptionally good, and, in my view, Gelb's thesis should be applied to all forms of statecraft and to promote the resolution of both newly emerging and long stagnating public policy debates.

Gelb accurately diagnoses the "weakening fundamentals of the United States.  First among them is that the country's economy, infrastructure, public schools, and political system have been allowed to deteriorate.  The result has been diminished economic strength, a less vital democracy, and a mediocrity of spirit."

Several paragraphs in this powerful essay deserve highlighting:

"The bases of the United States' international power are the country's economic competitiveness and its political cohesion, and there should be little doubt at this point that both are in decline.  Many acknowledge and lament faltering parts here and there, but they avoid a frontal stare at the deteriorating whole.  It is too depressing to do so, too much for most people to bear. … The United States is now the biggest debtor nation in history, and no nation with a massive debt has ever remained a great power.  Its heavy industry has largely disappeared, having moved to foreign competitors, which has cut deeply into its ability to be independent in times of peril.  Its public-school students trail their peers in other industrialized countries in math and science. They cannot compete in the global economy.  Generations of adult Americans, shockingly, read at a grade-school level and know almost no history, not to mention no geography.  They are simply not being educated to become the guardians of a democracy.

These signals of decline have not inspired politicians to put the national good above partisan interests or problem solving above scoring points.  Republicans act like rabid attack dogs in and out of power and treat facts like trash.  Democrats seem to lack the decisiveness, clarity of vision, and toughness necessary to govern.  This tableau of domestic political stalemate begs for new leadership.  The nation that not so long ago outproduced the rest of the world in arms and consumer goods, the nation lionized and envied for its innovation, can-do spirit, and capacity to accomplish economic miracles, has become overwhelmed by the tasks it once performed competently and with relative ease."

This is the most succinct and gut-wrenching summary of our national predicament that I have read.  Gelb puts his finger directly on the jugular vein of America's innovation ecosystem and diagnoses the multiple layers of dysfunction that have launched our country into such a deep crisis.  I share his fear of a new global reality developing along the following lines:

Images-1"The real danger in this universe of primitivism and plenty is not new wars or explosions among major states, or a world war, or even a nuclear war.  It is the specter of nations drowning in a flood of terrorism, tribal and religious hatred, lawlessness, poverty, disease, environmental calamities, and governmental incompetence.  Many nations are going under because they are simply unable to cope, and they will drag others down with them."

 

Gelb closes this essay with an impassioned plea for action, and most important, he retains a strong sense of hope and pride in our country:

"Every great nation or empire ultimately rots from within.  One can already see the United States, that precious guarantor of liberty and security, beginning to decline in its leadership, institutions, and physical and human infrastructure, heading on the path to becoming just another great power, a nation barely worth fearing or following.  It is time to send up flares signaling that the United States is losing its way and its power, that it is in trouble. But it is even more important to reaffirm the belief that the United States is worth fighting for both across the oceans and at home.  There should be no doubt that the United States, alone among nations, can provide the leadership to solve the problems that will otherwise engulf the world.  And for all the country's faults, there should be no doubt that it remains the last best chance to create equal opportunity, hope, and freedom.  But to restore all that is good and special about the United States, to rescue its power to solve problems, will require something that has not happened in a long time: that pragmatists, realists, and moderates unite and fight for their country."

ImagesI've been sending out flares to other realistic moderate pragmatists on this and other topics that demand a "common sense" approach for years.  Through groups such as the Council on Foreign Relations, the Aspen Institute's Socrates Society, the Working Group on Director Accountability and Board Effectiveness, and, most recently, the Security Innovation Network, I have joined and helped forge communities of interest bound together by empowered individuals who are thoughtful and constructive agents of change.  As Gelb points out, we have a lot of wood to cut, but I remain energized and, most importantly, hopeful that we can make a difference because we have to.  Given where America stands today, fomenting pragmatic and realistic change is not an option, it is a requirement.

  

 

ITSEF Video: How Global Competition Has Changed and the Critical Role of Venture Capital in America’s Growth Economy

Global Competition and the Critical Role of Venture Capital in America’s Growth Economy

[RUN TIME 3 MINUTES 17 SECONDS]
Dr. Curtis Carlson, President and CEO of SRI International, speaking on the panel with Dr. Gururaj “Desh” Deshpande, Chairman Sparta Group, LLC and Lesa Mitchell, VP Advancing Innovation, Kauffman Foundation, at the IT Security Entrepreneurs’ Forum held at Stanford University on March 18, 2009.
Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Dr. Carlson discusses the fragility of the U.S. venture capital ecosystem and how the U.S. Government needs to better understand the role of venture capital as the growth engine in the U.S. economy. Dr. Carlson also describes the declining competitive position of the U.S. in research and development today.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

ITSEF III Video: Curt Carlson, CEO of SRI International, on America’s Challenges Making the Transition to an Innovation Economy

Challenges Created by America’s Transition to an Innovation Economy

[run time 2 minutes 36 seconds]
Dr. Curtis Carlson, President and CEO of SRI International, speaking on a panel at the IT Security Entrepreneurs’ Forum (ITSEF) held at Stanford University on March 18, 2009. Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Carlson explains how the US has transitioned to an Innovation Economy and discusses the broad socio-economic implications of accelerated rates of change in technology.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

ITSEF III Video: Unintended Consequences of U.S. Regulation– Serious Risks to Venture Capital and Innovation

Unintended Consequences of Regulation Put Fragile VC and Innovation Ecosystems at Grave Risk

[run time 46 seconds]
Dr. Curtis Carlson, President and CEO of SRI International, speaking on a panel with Dr. Gururaj “Desh” Deshpande, Chairman Sparta Group, LLC, and Lesa Mitchell, VP Advancing Innovation, Kauffman Foundation, at the third annual IT Security Entrepreneurs’ Forum (ITSEF) held at Stanford University on March 18, 2009. Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Dr. Carlson addresses the challenges that exist today for the U.S. to build an innovation economy. He credits unintended consequences from financial regulation, in particular Sarbanes Oxley and current U.S. immigration policy for highly skilled foreign nationals, as killers of innovation in the U.S. today.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

ITSEF III Video: Desh Deshpande on the Role of Universities and Research Institutes as Centers of Excellence in Technology Innovation

The Increasing Role of Universities and Research Institutes as Centers of Excellence For Innovation Today

[run time 1 minute 27 seconds]
Dr. Gururaj “Desh” Deshpande, Chairman Sparta Group, LLC speaking on a panel the third annual IT Security Entrepreneurs’ Forum (ITSEF) held at Stanford University on March 18, 2009 with Lesa Mitchell, VP Advancing Innovation, Kauffman Foundation, and Dr. Curtis Carlson, President and CEO of SRI International. Pascal Levensohn, Founder and Managing Partner of Levensohn Venture Partners moderated the panel. Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Deshpande explains how universities and research institutes like SRI International are at the center of gravity for innovation today.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

ITSEF III Video: The Immigration Debate and H-1B Visas– Lesa Mitchell of the Kauffman Foundation

The Immigration Debate: H-1B Visas and Highly Skilled Technology Entrepreneurs

[run time 35 seconds]
Lesa Mitchell, VP Advancing Innovation, Kauffman Foundation speaks on a panel with Dr. Gururaj “Desh” Deshpande, Chairman Sparta Group, LLC, Dr. Curtis Carlson, President and CEO of SRI International, and moderator Pascal Levensohn, Founder and Managing Partner of Levensohn Venture Partners. The panel is at the third annual IT Security Entrepreneurs’ Forum (ITSEF) held at Stanford University on March 18, 2009. Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Ms. Mitchell discusses how the U.S. must re-evaluate its immigration policy.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

ITSEF III Video: Curt Carlson, CEO of SRI International, Calls for a National Innovation Czar

The Need For An Innovation Czar At The Federal Level

[run time 43 seconds]
Dr. Curtis Carlson, President and CEO of SRI International, speaking on a panel with Gururaj “Desh” Deshpande, Chairman Sparta Group, LLC and Lesa Mitchell, VP Advancing Innovation, Kauffman Foundation, at the third annual IT Security Entrepreneurs’ Forum (ITSEF) held at Stanford University on March 18, 2009. Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Dr. Carlson urgently calls for an innovation czar at the Federal level.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

ITSEF III Video: Converging Forces– America’s Innovation Crisis, Cybersecurity, and National Security

Exposing the Links Between America’s Innovation Crisis, Cybersecurity, and National Security (ITSEF III full panel presentation)

This 51 minute video of the panel discussion on America’s Innovation Crisis is the first public release of live, unedited conference proceedings in the three-year history of the IT Security Entrepreneurs Forum (ITSEF). ITSEF III was held at Stanford University on March 18, 2009. Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Pascal Levensohn, Founder and Managing Partner of Levensohn Venture Partners, moderates the panel, with panelists Dr. Curtis Carlson, President and CEO of SRI International, Dr. Gururaj “Desh” Deshpande, Chairman Sparta Group, LLC and Ms. Lesa Mitchell, VP Advancing Innovation, Ewing Marion Kauffman Foundation.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

Aspen Institute Video: Judy Estrin Examines Some of the Root Causes of America’s Innovation Crisis

Examining the Root Causes of America’s Innovation Crisis

[4 minute run time]
Ms. Judy Estrin, author of “Closing the Innovation Gap”, former CTO of Cisco Systems, and a successful serial entrepreneur, took some time out of our seminar on Innovation on February 15, 2009 during the Aspen Institute Socrates Society Winter program in Aspen, Colorado to discuss some of the root causes of America’s Innovation crisis. This interview was conducted specifically in advance of the third annual IT Security Entrepreneurs’ Forum (ITSEF III) Innovation panel held at Stanford University on March 18, 2009 and was first released at the conference.
Since 2007, ITSEF has focused on advancing innovation in security technologies through public-private partnerships by developing a community of interest between Washington and Silicon Valley. ITSEF is the only conference of its kind designed to “bridge the gap” between the Federal Government, system integrators, venture capitalists, and academic research communities. Pascal Levensohn, Founder and Managing Partner of Levensohn Venture Partners, moderates the panel, with panelists Dr. Curtis Carlson, President and CEO of SRI International, Dr. Gururaj “Desh” Deshpande, Chairman Sparta Group, LLC and Ms. Lesa Mitchell, VP Advancing Innovation, Ewing Marion Kauffman Foundation.
ITSEF is a part of the Security Innovation Network (SINet). For more information on SINet, click here.

More on Financial Regulation, Its Unintended Consequences, and the Geithner Plan

Images-1

The media is full of negative reactions related to
the announcement of Treasury Secretary Geithner’s extensive regulatory reform plan for the oversight of the capital markets. I can't imagine that an announcement of this nature wasn’t widely
expected.  On November 28th,
2008 I posted a warning on this specific issue:

A Case
Study in the Unintended Consequences of Financial Market Regulation: The Death
of the Small Cap U.S. IPO?
:

"The first 100 days of the Obama administration
are widely expected to usher in a new era of U.S. capital markets regulation
designed to restore the public’s trust in the decimated institutions that
provide much of the liquidity infrastructure for the global capitalist
system.  It is imperative that improved financial oversight be achieved
swiftly through the enactment of effective regulation so that the markets can
re-equilibrate and resume their normal function.  Without these necessary
changes, global economic growth will continue to falter.
  At the
same time, we must recognize that regulations enacted in haste can have severe,
negative unintended consequences." 

Pui-Wing Tam of the Wall Street Journal interviewed me this past Friday
and asked how I felt about increased regulation of venture capitalists as part
of the Geithner plan.  Her article
is published in WSJ Blogs in the Digits Blog and is titled Views From VC-Land
on Regulation
.

My quote was given in the context of whether
becoming a
Registered Investment Advisor presents an undue burden for venture
capitalists, which, based on my previous professional experience as a
Registered Investment Advisor, I believe that it does not.  

More important is my first point, which
is that we have experienced a massive failure of oversight in this country. 

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Both the Government and the private
sector agree that we clearly have a regulatory process problem and that it must
be resolved.  We should not forget
that convicted felons such as Bernie Madoff were not only Registered Investment
Advisors, they actually passed inspections by the Securities Exchange
Commission.  The colossal systemic
failure of this country’s regulatory oversight of the capital markets has been
exposed by the SEC’s own inspector general, David Kotz, in an extensive report on the
SEC’s failure to enforce a whole body of regulation governing the now largely
defunct investment banks
.

A series of unintended consequences stemming
from over a decade of misguided federal securities regulations is also at the
root of the structural problems that currently prevent liquidity from coming
back to the public equity markets for emerging growth companies, and this has
been exposed succinctly in the white paper
“Why are IPOs in the ICU”.

I think it is unrealistic for investment
managers in any sector to anticipate less regulatory oversight in the US going
forward—but it is incumbent upon Secretary Geithner, President Obama, and the
Congress to recognize the proclivity of regulation to fail to accomplish its
intended goals.  We are already
living with those consequences right now.