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Funding for startups

Startups Prepare for Pitchfest

DALLAS -- Startups seeking funding in the telecom equipment space? Who's kidding whom?

Believe it or not, venture funding activity still exists. And 30 young companies -- including some telecom and wireless startups -- are getting a chance to pitch their wares to an audience of more than 400 moneymen from Texas and elsewhere in the southwest who will gather here at the Southwest Equity Capital Summit (SECS), an annual venture investment confab.

"It's a good place to learn what's on the minds of the VCs," says Scott Grout, CEO of Chorum Technologies Inc., a company that closed a $54.7 million funding round about this time last year.

So what does a young startup do to raise money in this environment? Grout's advice for startups seeking capital is to be realistic about funding terms, demonstrate a deep understanding of the market you're trying to penetrate, and "state credibly what your exit strategy will be."

"At the end of the day, investors get into an investment so they can someday get out," he says.

One startup that's busily preparing for its moment in the spotlight is jNETx, a Dallas-based developer of middleware for telecom operators. "Obviously we're excited about the opportunity and we want to do the best possible job," says Steve Hollis, founder and VP of jNETx. "That excitement might lead to a little nervousness."

Hollis says jNETx is looking to attract $5 million in new financing for its middleware, which he says will help wireline and wireless carriers implement new phone services, ranging from short message services to automated personal secretaries. JNETx's software enables the new services, but the service creation itself is left to third-party developers, a division of labor that is paying off handsomely for NTT DoCoMo Inc.'s (NYSE: DCM) i-mode platform.

In a way, jNETx's software appears to be a next-generation service control point, the node in a telephone network that hooks into several databases and signals network switches to provide specific services. The startup says one European wireless network is already installing its software to run tests.

Hollis says jNETx competes with Infitel International N.V., Incomit, and AePona Ltd. So far it has raised about $2 million in funding from its founders and Mint Capital, a London-based venture firm.

The company has about 35 employees, most of them software developers based in Moscow [ed. note: Russia, that is, not Idaho].

Other attendees will include big corporations who are either looking to partner or invest in startups. Fujitsu Network Communications Inc. (FNC), based in Richardson, Texas, says it is always looking to team with photonic component startups and, in rare cases, systems vendors. "I'm going to be talking a lot less about investing and a lot more about partnering," says Brian Gawick, senior VP of product development at FNC.

Not all early-stage startups seeking funding will be met with fistfuls of cash, despite the prime audience, says John Adler, a venture partner at InterWest Partners. "I know we're going to see deals, but I don't expect that I'm going to see one that makes me stand up and say, 'I'm going to fund that thing.' "

However, startups like jNETx, that are looking for additional funding at SECS or a similar venue, may have more success. "I think it's really good for companies that have got funding already and they're getting ready to go out and get follow-on funding from groups like VCs," Adler says.

— Phil Harvey, Senior Editor, Light Reading
www.lightreading.com
Half-Inch Stud 12/4/2012 | 9:38:42 PM
re: Startups Prepare for Pitchfest perhaps the issue is REALLY A SIMPLE MATTER of
"really smart people" available to work.

Therefore, perhaps the "really smart citizens" are busy working the U.S.A., Canada, Japan, and China.

H.I. Stud
sigint 12/4/2012 | 9:38:44 PM
re: Startups Prepare for Pitchfest packetswitch:

When you say India has the smartest people, do you base this on which of the following:
:
:

EOP
______________________________________________

India doesn't haven't an unusually large percentage of smart people, maybe just close to the global average. However, given the large population, you could say that the *absolute* number of smart people is large.

Unfortunately, many of these smart people (and some not so smart people) have migrated to the US and other Western nations. This, IMHO, has been detrimental to India.

We have to remember that most of these migrants have had the benefit of a free education in what is a poor country. Indian programmes in Space, Defense and Telecom have suffered greatly due to lack of skilled engineers.

Yeah, do send them back. India will be better off. And, if what you say is correct, so will the US.

Thanks,
Sigint
rafaelg 12/4/2012 | 9:39:01 PM
re: Startups Prepare for Pitchfest READ the bottom of the site page...
:-D
rbfishing 12/4/2012 | 9:39:03 PM
re: Startups Prepare for Pitchfest The intent of the H1B program was to make additional technology workers available for positions that could not be filled with domestic talent. The problem is that there is certainly not now, nor was there probably ever a need for this program. Iindustry organizations like the Information Technology Association of America and other groups have in the past and continue to Lie to Congress about the need to import foreign labor to fill the thousands of jobs that will go unfilled unless Congress acts to continue or increase the number of H1B visas. Maybe they should put out a list of the "unfilled" positions because there's thousands of unemployed technology workers that would like to know where to find them.

There is something that can be done. The current H1B visa level is 195K for 2002 but is set to revert back to the original level of 65K next year unless Congress acts. WRITE YOU CONGRESSMEN/SENATOR. Unless we do something to expose these lies there is no hope of change.
veluthuru 12/4/2012 | 9:39:05 PM
re: Startups Prepare for Pitchfest
While BobbyMax (Harvey Mudd's) email suggesting Indians are "inferior" programmers and similar insinuations remain, rebuttals have been removed.

What is LR's policy regarding removing postings ?
rafaelg 12/4/2012 | 9:39:29 PM
re: Startups Prepare for Pitchfest OOOHHHHH.... I can't do that. I see his posts as one of the many happy moments during my day! He always manages to make my face muscles work! I hope never to find his identity. Whether a fake or not, I would be disappointed...

lastmile 12/4/2012 | 9:39:41 PM
re: Startups Prepare for Pitchfest LR should remove the 'ignore' feature. LR should also eliminate the P2P rating system. Everyone deserves at least a 5 for the hard work in expressing garbage. This includes me and BobbyMax is no exception.
ThinkLogically 12/4/2012 | 9:39:41 PM
re: Startups Prepare for Pitchfest Hey Jim
I totally agree.. but with a caveat ..
not watching such bigots may be harmful to your health :surgeon general
keep a healthy sense of humor and its all good .. some of these posts are intentionally inflamatory .. doesnt mean you have to get inflamed ... a little bit of ridicule always helps ;-)

also theres theres the "a little knowledge is a dangerous thing" brigade led my major no_light ..

thanks to the positive posts .. also i know im adding fuel to the fire by getting drawn into this discussion and steering it away form the topic at hand ..

so ill let it lie..

jim_smith 12/4/2012 | 9:39:42 PM
re: Startups Prepare for Pitchfest Dear LR readers,

The "Ignore author" feature is meant for the
likes of BobbyMax.

Use it.

JS
rjmcmahon 12/4/2012 | 9:39:50 PM
re: Startups Prepare for Pitchfest how does ip/broadband/atm/mpls etc etc help improve the human condition? i believe that
first we got to solve the basic problems of
food/shelter/water/air/environment etc. Then
lets talk about more esoteric needs like
broadband.
__________________

It's about so much more than broadband or technology choices.

It's about an advanced unicast communications infrastructure with inherent storage which provides the basis for all of mankind. Getting there requires reducing the costs so everybody, from the past, in the present, and to the future, can first understand and then assist with the individual needs.
droptorgy 12/4/2012 | 9:39:51 PM
re: Startups Prepare for Pitchfest I succeded in rating MYSELF a 5!
THAT'S how to swing it!
Let a smile be Ure umbrella!

Regards
droptorgy 12/4/2012 | 9:39:51 PM
re: Startups Prepare for Pitchfest Re: 'Towards...'.

THAT was the best goddam post I've ever goddam read on ze LR!!!

Joke aside, if you rate me a measly '1'.
Then pleeease argue why.
h-hWHY???

Regards again, from your droptorgy
netskeptic 12/4/2012 | 9:39:52 PM
re: Startups Prepare for Pitchfest Let us face it high tech is not a high growth area anymore. And once it happens wages would deteriorate and jobs would start moving out to the cheap labor markets.

It was going to happen regardless of H1-B policies in exactly same way as it did with shoemaking in MA after WWII. I feel that H1-B actually allowed both to postpone this process by 5-10 years and to slow it down significantly most H1-Bs got their green cards and strongly prefer to stay in the US than going to back to the countries of origin.

Thanks,

Netskeptic
packetswitch 12/4/2012 | 9:39:53 PM
re: Startups Prepare for Pitchfest When you say India has the smartest people, do you base this on which of the following:

1. the number of noble price winners the country has produced

2. the standard of living

3. military strength

4. annual GDP

5. telecom, transportation, and other infrastructures

6. innovation in key industries such high tech, medicine, automobile, aerospace, etc

7. literacy and poverty rate

>India has one of the finest basic education

Then why do so many students from India (and the rest of the world) want to come here to study?

>centres. Why do you think companies hire >Indians ? Are these exceutives fools! No >because they know what they are getting.

You are right, the executives are very smart. They go out and hire a foreign engineer for 30%-40% less than what it would cost the firm to hire an american engineer.
WhiteKnight 12/4/2012 | 9:39:53 PM
re: Startups Prepare for Pitchfest Not to mention the loss of the tax base that has
occured and is continuing due to the heavy layoffs
in the high tech industry.
This ought to give the U.S. govt. an incintive to
take actions to prevent even more of its citizens
from being layed off, when the H1Bs are still
gainfully employed in this country.
packetswitch 12/4/2012 | 9:39:54 PM
re: Startups Prepare for Pitchfest I think it is necessary for our government to protect our high-waged, high-skilled industries, the same way the rest of the world's governments do. High technology is very critical to the national security and the future success of the U.S. economy in the 21st century and beyond.
Moreover, if there is truly a labor shortage in IT (which I have not yet seen any convincing data to support this claim, even during the 90s boom period), I would argue that the most effective solution in the long run is to internally develop the skills of our own citizens to fill these professions, and resist the shortsighted approach of importing cheap labor which may be very beneficial in the short term. The government can provide various incentives to encourage americans to acquire or
upgrade their hightech skills. In fact, by simply allowing the wage in this area to remain high, more american students will opt to study in the computer or other hightech areas eventually since the salaries are higher in these fields.

However, if we continue to import a large number of IT workers from Asia, the wage in the high tech industries will inevitably fall or remain stagnant -- when the supply increases, the price (wage) decreases (according to basic Economics).

There are other serious consequences of not protecting the hightech industry that the U.S. currently has the competitive advantages in comparison with the rest of the world hightech market. When many of these highly trained foreign engineers and executives return to their home countries, they take with them not just our technology, but the knowledge of how to do
business in the software and hardware industries. I know several software firms in california and massachusetts that have already lost or begun to lose business with their European partners and clients from other parts of the world. Some of our formal foreign clients are beginning to import software services from India since they can provide the same services for much less.

As a result, we have been infact helping to foster and develop hightech industries in these East Asian countries so that they can turn around and compete against our hightech export business. Moreover, the majority of these developing countries in East Asia are aggressively developing their infant industries (such as software and other hightech areas) and have adopted very strict immigration policies to protect their high-waged industries. They, infact, prohibit foreigners (including Americans) from working in most of their so called "high-waged" industries.

I just want to point out that I don't have a problem with any countries trying to produce and export the best products and services in the most effective fashion. However, why do we have to train these foreigners by bringing them here to replace our own professionals only to have them turn around and compete against us internationally (when they go back or start a
business in their home countries) and DOMESTICALLY? The long term loss to the U.S. economy will be substantial.

Believe it or not, when an Indian software firm in Bangalore wins a contract with our formal European business partner or one of our own domestic firms, the overall loss in revenue affects not only the american engineers, but other sectors as well.
droptorgy 12/4/2012 | 9:39:56 PM
re: Startups Prepare for Pitchfest Let us work to understand the customer, believe in our technology and conduct a civilized debate.

Let us work together, as vendors, partners, customers and competitors.

Let us work towards the next frontier of human communication.

Regards
optobozo 12/4/2012 | 9:39:57 PM
re: Startups Prepare for Pitchfest When Lastmile said "any grandparent would love to see their grandchildren "face-to-face", the person nailed the communications nail squarely on the head. Nothing substitutes for face-to-face communication, but we strive to approximate it the best we can. Look at the progression of communications technology -

Letters - slow, deliberate, but delivers the message eventually
Telegraph - covered long distances more quickly, but little human touch involved
Telephone - covers great distances instantly, has the human touch, but only audible and misses visual clues
TV - audio and visual, but one way only, programming limited to a schedule and desire to go to a rental store
E-mail - like a letter, but more quickly delivered and a heck of lot cheaper
Video-conferencing - two-way, covers distance, includes aural and visual information, but more impersonal than face-to-face.

FTTH may spur the creation or improvement of communications mediums that help tear down the barriers of distance and time and more closely approximate the real thing; a face-to-face conversation rich with aural and visual content and clues that aren't fully present in any other way - yet.

I think the arguments of having the killer app first before doing something as novel as FTTH (in whatever form) are just plain wrong. Most everything improves when the delivery mechanism is improved first, not the other way around. People use up the bandwidth, MHz, speed limit, etc. when it is provided to them at the right price. The speed of glass is not as limiting as the speed of copper. But, admittedly, cost may be.

But, how many people do you know who've gone back to dial-up from DSL or cable? Or B&W TV from color? VHS tapes from TiVo or DVD? Letter writing and telegraphs for phone calls or e-mail?

The VOD and video-conferencing techniques in development are a couple of improved methods of existing communication (and entertainment) models. A more universal, faster data pipe in your home allows you to exchange your higher resolution baby pictures and home movies, play bigger and better games with your scattered friends, watch or listen to whatever movie or music you want whenever you want (ah, those Quest commercials).

Those of us (still) in the business have to convince the right folks this will make more money than sitting on their existing copper cash cows. What is going to satisfy the human need to be entertained and communicate the best?
bigdaddy 12/4/2012 | 9:39:57 PM
re: Startups Prepare for Pitchfest It is clear that Mr. Adler and other VCs are willing to stand up and say I will fund that company...

Witness: Arriso Networks Secures $16.7 Million Series A Funding

RICHARDSON, Texas -ˇ Aug. 12, 2002 -ˇ Arriso Networks Inc. today announced that it has closed its Series A funding for approximately $16.7 million with participation from prominent venture capital firms InterWest Partners, CenterPoint Ventures and Sevin Rosen Funds.

http://www.arriso.com/pr-07-30...

So what does it take to get funding?

"CenterPoint's decision to invest in Arriso, at both the seed level and as part of Series A financing, is based on the strength of the management and technical team and the importance of Arriso's products to critical parts of the communications sector," said Coyne Gibson of CenterPoint Ventures.

Oh yea, "strength of managementand technical team" means people that the VCs know really well and trust.

Not a bad thing these days.

bigdaddy
chitgo 12/4/2012 | 9:40:05 PM
re: Startups Prepare for Pitchfest Thank God literacy is not rampant in India. Otherwise, the Indian economy owing to its large population would have been 10 to 20 times that of the United States. Still, with all its limitations, India has the best Engineers in the world.
sigint 12/4/2012 | 9:40:05 PM
re: Startups Prepare for Pitchfest Jamesbond:

India does NOT have finest basic education --
(fyi - most indian schools teach students to
memorize entire textbooks and replicating them
on exams). Practical knowledge is never taught/
encouraged.
__________________________________________________

Most of what you say is true. Practical skills are rarely emphasised. Most schools aren't equipped well enough to run such courses.

However, mathematics is taught across the country. The large pool of mathematical talent has made the software boom possible.

And BTW, don't bother trying to fix india's problems - these problems have been perpetuated by politicians and can't be fixed by Engineers !
jamesbond 12/4/2012 | 9:40:06 PM
re: Startups Prepare for Pitchfest Job security comes from solving problems that help improve the human condition. That is true in China, India, US and everywhere else.
----------------------------------------

rj,

how does ip/broadband/atm/mpls etc etc help improve the human condition? i believe that
first we got to solve the basic problems of
food/shelter/water/air/environment etc. Then
lets talk about more esoteric needs like
broadband. Once these basic needs are served
then my friend, people will pay whatever for
broadband.
jamesbond 12/4/2012 | 9:40:06 PM
re: Startups Prepare for Pitchfest Who runs NASA?
Who runs Health care here ?
Where do the finest doctors come from ?
Where do the finest researchers come from ?

With these highly mathematical oriented brains software skills come naturally. Average Indian (Even a rikshaw puller! ) can calculate change faster than any average American (I think some of them cant even calculate).
-----------------------------------

brightthink,

if india/indians are so great why can't they
fix their own country?

why do they have to come all the way to US
to do all these great things?

Indians don't run NASA, they don't run healthcare
and ALL finest researchers are not indians.

India does NOT have finest basic education --
(fyi - most indian schools teach students to
memorize entire textbooks and replicating them
on exams). Practical knowledge is never taught/
encouraged.




willywilson 12/4/2012 | 9:40:09 PM
re: Startups Prepare for Pitchfest If fiber does replace copper, video telephony will be available to the residential user and it will be a simple telephone with a video screen but without a desk top computer and tons of associated garbage. I am sure any grand parent would love to see their grand children "face to face"

Remember the flintstones with their video phones. Yes that is fiction but that will soon become a reality.

---------

Copper can easily support data rates sufficient for high-quality video conferencing. There are two problems: QoS and the ILECs' last-ditch defense of their T-1 rates.

If the CLECs hadn't been basically a bunch of corrupt stock fraud schemes you'd have seen widespread, high-quality video conferencing by now. As it turns out, though, most CLECs weren't established for the purpose of operating telecom networks. So it goes ...
willywilson 12/4/2012 | 9:40:09 PM
re: Startups Prepare for Pitchfest The candidates that can help with our industry's resurrection are not applications (nor fancy boats) but rather are people; people that understand distributing bits at the cheapest price possible will make our world a better place

--------

Wow, you managed to combine an error and a non-sequitur in a single sentence. No one cares about bits. It's all about applications. Do you buy "streaming electrons," or power to run the lights and the dishwasher? Think, my man!
lastmile 12/4/2012 | 9:40:09 PM
re: Startups Prepare for Pitchfest Personally I respect your view.
PC/TV+web cam is available today but the resolution is so poor that the common user generally stops after the first try. The other types of video conferencing are equally bad but some firms use dedicated lines and they pay a big sum for that kind of comfort.
If fiber does replace copper, video telephony will be available to the residential user and it will be a simple telephone with a video screen but without a desk top computer and tons of associated garbage. I am sure any grand parent would love to see their grand children "face to face"
Remember the flintstones with their video phones. Yes that is fiction but that will soon become a reality.
Unfortunately copper is still the main mode of land-line communication and the critical mass of penetration for video telephony will depend upon how soon fiber replaces copper.
I believe it will happen soon. But there are so many who believe that it will never happen.
So as always some intelligent reader will give me a 1 (peer rating) and life will go on.
But life will certainly be more entertaining and interesting if fiber gets closer to all our homes.
willywilson 12/4/2012 | 9:40:09 PM
re: Startups Prepare for Pitchfest I need not report the things that are focus of Wall Street Journal, New York Times, and Washington Post.

--------

Those publications haven't even touched the tip of the iceberg, and they never will. Too many entrenched interests.
rjmcmahon 12/4/2012 | 9:40:10 PM
re: Startups Prepare for Pitchfest why should cos keep jobs in mainland US ?
______________________

The US needs to *create* mainland jobs because it needs a local tax base (amongst other reasons). The ratio of worker/senior is going from 35/1 to 2/1. Anti-immigration policy just makes that problem worse.

Unfortunately, during a recession many believe that a protectionist immigration policy will provide them job security.

Job security comes from solving problems that help improve the human condition. That is true in China, India, US and everywhere else.
spotlight 12/4/2012 | 9:40:10 PM
re: Startups Prepare for Pitchfest After reading this thread, I think light reading should change its name to funny reading. I will give some examples

Bobby Max wrote
"I still do not understand why the government is EXPORTING low grade software workers, gas station attendants, and restaurant workers from India. Do we not have enough restarant workers?"

I also do not understand why the US government is EXPORTING low grade workers ... Thinking about it why dont you start your own all american company and get your capital from VC's who are not animals and try to sell the product to an all American Telco ....

brighttank wrote :

Who runs NASA?
Who runs Health care here ?
Where do the finest doctors come from ?
Where do the finest researchers come from ?

brighttank, you could add Who runs Whitehouse ?
Who runs UN? Who runs the world?? and so on
too while you are framing the questionnaire

rjmcmahon wrote:

"Job security comes from solving problems that help improve the human condition. That is true in China, India, US and everywhere else"

Have you heard about government jobs? aren't they pretty secure and they have nothing to do with human condition. Wake up to captialism !!!

Keep posting.

SL

AAL5 12/4/2012 | 9:40:11 PM
re: Startups Prepare for Pitchfest
Bobby as usual is displaying his racist colors, and his lack of grip on reality.

AAL5
gea 12/4/2012 | 9:40:12 PM
re: Startups Prepare for Pitchfest Waitaminute folks...

This was our infamous Bobby Max (aka Harvey Mudd) often referred to as "Booby" who started this thread. This character is well known to completely fabricate "facts" that fit his worldview.

The only thing I can say about him is that he actually seems to believe most of the nonsense he spouts: this stems from the tenuous grip this character has on reality.

If you want to discuss this issue intelligently, don't quote Booby or any of his facts: he believes the whole world was snookered by Indian VCs that work for aliens from outerspace or something.

Booby: Where did you get the figure 500,000 from? And when you say the government forced the hiring of gas station attendants, are you referring to those wih advanced degrees, or do you seriously expect us to believe that high tech firms are hiring people with no college education to write their EMS code?

Either way, you are completely out of your mind, and your obvious racist hatemail stinks.
brighttank 12/4/2012 | 9:40:12 PM
re: Startups Prepare for Pitchfest It seems that person who posted such comments is totally ignorant of capabilities of Indians.

Who runs NASA?
Who runs Health care here ?
Where do the finest doctors come from ?
Where do the finest researchers come from ?

Do you think Americans! No my friend most of them came from India.

It is only their politeness and not so aggressive self adverstisement which lend themselves to comments by people like yourself.

India has one of the finest basic education centres. Why do you think companies hire Indians ? Are these exceutives fools! No because they know what they are getting.


With these highly mathematical oriented brains software skills come naturally. Average Indian (Even a rikshaw puller! ) can calculate change faster than any average American (I think some of them cant even calculate).

If you cant keep up with them. It is your problem.





rjmcmahon 12/4/2012 | 9:40:12 PM
re: Startups Prepare for Pitchfest Video telephony over fiber is the major candidate to improve the telecom industry.
_______________________

The candidates that can help with our industry's resurrection are not applications (nor fancy boats) but rather are people; people that understand distributing bits at the cheapest price possible will make our world a better place.
droptorgy 12/4/2012 | 9:40:14 PM
re: Startups Prepare for Pitchfest Iipoed, thanks for your question.
My points:
* Video telephony over fiber is the major candidate to improve the telecom industry.
* A few years from now that will happen and prosper.
I found these points relevant in this thread, when considering some of the previous messages.
OK, Iipoed?
Iipoed 12/4/2012 | 9:40:14 PM
re: Startups Prepare for Pitchfest droptorgy: And your point is?
brahmos 12/4/2012 | 9:40:15 PM
re: Startups Prepare for Pitchfest heh-heh, since rickshaw pullers, gas station
workers, fishermen, barbers in India can do the
work of all these rich american workers...
...why should cos keep jobs in mainland US ?

even if things recover, they can make more profit.

the "model" wherein rich , highly developed countries would continue to LOOT the rest thru
"hi-end" work while the rest get to work in
sweatshops isnt going to work. india, china they
will grab work at all levels.

whining about why "american" cos dont keep jobs
in usa wont help. more & more of these cos are
going to be majority staffed by non-amercians and
their concerns will get more importance.

companies dont need h1 visas in future. they
have developed confidence in offshore dev centers
and increasingly even GC holders are willing to
move back given a internal transfer. people
have seen dark side of the Boom and the fight
got knocked out of 'em.

..its better for a layed off GC holder with
COBRA running out to work his trade than fight
to work in a grocery store or retail job :(
droptorgy 12/4/2012 | 9:40:16 PM
re: Startups Prepare for Pitchfest People will learn to desire to interactively communicate by video.
The critical mass of penetration, 1 million connections world-wide, reached in 2006, +/-1 year.
It will be implemented using PC/TV+web cam, video/IP/Ethernet, FTTH LAN, SM fiber P2P star.
This will be financed by banks, funds, VC and/or government.
And provided by a mix of incumbents and competitives, regarding component vendors, system vendors, connection providers and service providers.
Customers will be both enterprise, municipal, landlords and end subscribers.
This will first be employed in the economically rich parts of the world.
raid 12/4/2012 | 9:40:16 PM
re: Startups Prepare for Pitchfest sanjoshi,

(1) There are lots of high quality Indian engineers in the US. Most of these came to the
US universities on F1 student visa. The H1-B has worked much less affectively, mostly due to the difficulty in ensuring quality and sometimes blatant dishonesty by the companies contracting these workers.

(2) More than 70% of H1-B workers probably stay back in the US thru the green-card program (which is usually obtained in 3-5 years of stay in the USA).

(3) The H1 caps were increased during the bubble period causing a large influx of software engineers from India. This influx has virtually stopped today since no jobs are available. However congress needs to lower back the Cap to the pre-bubble times.

The US government does need to fend for its workers. For example, it can reduce the supply of green-cards for the next five years, so that the influx is reversed and the US economy can support a low unemployment rate.

BTW, I am not a US citizen and this is exactly what I would of expect my government.
sanjoshi 12/4/2012 | 9:40:18 PM
re: Startups Prepare for Pitchfest I am not a H1 B worker but would still like to correct you on some of the things that are obviously misunderstood/miscommunicated.
1. 12 of the top 20 SEI CMM Level 5 companies of this world are Indian. That means quality so you are obviously wrong in assuming that Indians are Low Grade software workers (Cost effective absolutely yes ....)
2.FYI any one coming on H1B can only stay in US for Max of 6 yrs. 3 kids in 6 yrs just to stay back in US ??? May be a few want to stay back but 70% doing that sounds unreasonable to me.
3. As for Health care system ...I believe that is covered by Insurance and Premium is obviously not paid by US Govt. On the contrary you will be surprised to know that every H1B worker contributes 10% every Paycheck as SS tax without getting even a cent back as benefits bcos by the time 6 yrs are up he/she hardly qualify for any benefits. FYI rest of US residents benefit from it.
If you forget for just for one moment that you are one IT professional and look at it as an average American you will realize that China has taken away more jobs from Average Americans that those 500k Indians u mentioned. The Indians atleast pay taxes and spend money in US on Rent/Car/Groceries and have bank accounts which makes American economy benefit.
Juniper/Exodus/Hotmail/i2/Informatica...Some of the companies which employ hundreds of Americans and were founded by Indians....
Think of it rationally and you will find that inspite of such large no you will hardly ever see an Indian in a Terrorist attack or a crime....Its time you realize who your friends are and who your enemies are....
BobbyMax 12/4/2012 | 9:40:19 PM
re: Startups Prepare for Pitchfest Dear "Dr." Cplayer:

The things have made our country so great are not coincidental. Except for a few bad apples we had a very strong work ethic, dignity, and honesty. We helped each other and truly connected a very cohesive society.

The corruptions practiced by Wall Street, Stock Analysts, Investment Bankers, VCs, Enterpreauners copying products from each other. Because very stark form of corruption that has hit our country is not likely to disappear in the next two cades or so. Because of wide spread corruption, millions and millions of people lost every thing that they had. I need not report the things that are focus of Wall Street Journal, New York Times, and Washington Post.

TheLeetleTacoBellDog 12/4/2012 | 9:40:19 PM
re: Startups Prepare for Pitchfest Yeah for BobbyMax the conscience of the unwashed masses.

What is your plan to save the industry? We are ready to march!

TLTBD BOZO
BobbyMax 12/4/2012 | 9:40:20 PM
re: Startups Prepare for Pitchfest Telegone wrote the following:

Things can not be any worse in this Telecom Corridor. Nowadays people from Alcatal, Nortel, Eriksson, and many other startups who still alive are talking about close instead of lay-off.

I am very pessimistic, because I just could not see any sign of improving. Actually, now everyone are outsourcing engineer jobs to India, and I can only see this trend continue even there is a industry recover.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Telegone, you accurately reflect the situation. The Government including law makers do not care. In the year 2001, when layoffs were poccuring. many companies ( Cisco, Sun Micro Systems, Intel, Cypress, H-P, Compaq and other counless companies, were hiring System Administrators, Database Adminitrators, GaS Station Attendants, Restaurant workers on H1 Visa from India. I still do not understand why the government is exporting low grade software workers, gas station attendants, and restaurant workers from India. Do we not have enough restarant workers?

There is so much loophole in the law regarding H1-B visa works that I besgin to tremble. We have all the engineers capable of doing engineering work.

But the guys who swimming in the cesspool of options forced the government to import HIB visa workers from India. We are not preparing our engineers for the future. Our engineers do not get steady jobs because of H1-B visa workers from India.

About 70% of H1-B visa workers from India stay here in this country. Some of them even engage in fake marriages so that they can stay here.

Another trick practiced by H1-B vis aworkers is that before they produce at least three children that are born here on the US soil. A lot of these softworkers from India come on the strength of their children who were born here to serve the immigration vehicle for the parents ands friends.

I heard that there were over 500,000 Indian workers from India creating chaos with our school
system, Hospital System and Health Care System.

I am also told that California is one of the worst affected areas inthe country.

The american born worker is treated the sameway as H1B visa worker from India. In fact american workers are laid off first.

optical Mike 12/4/2012 | 9:40:30 PM
re: Startups Prepare for Pitchfest How old can a startup be and still be termed a startup?
I left a large established telecom company for the promises made by the start up/venture capital funded company.... Stock options by the thousand a good salary and the all important IPO.. That was almost three years ago and this startup was four years old at the time. There are still 25% more employees than when I started but less than 50% of what we employed eighteen months ago. But is it still a startup?
rjmcmahon 12/4/2012 | 9:40:31 PM
re: Startups Prepare for Pitchfest Oakster; If you want some ass kicking that your son could be proud of, Jimi could use a few jolts in the cranium. Let him know that stealing others' productivity does not enable anybody and, more importantly, it is behavior we will not tolerate.

http://www.lightreading.com/bo...
Oakster 12/4/2012 | 9:40:38 PM
re: Startups Prepare for Pitchfest rjmcmahon wrote...

Because he is stuck, living in denial, and is asking others for help in the only way he knows how. We can kick him while he is down or we can help him stand up.

So the question really becomes why do *we* ridicule somebody who is asking for our help? Our own insecurities is no excuse.


rj:

I mostly enjoy your posts to these boards. They are generally insightful and illuminating.

But in the case of BobbyMax, I vote for kicking him while he is down.

I think we've all discerned quite some time ago that BobbyMax is a Light Reading staffer who is paid to post inflammatory gibberish solely for the purpose of inciting [oft-emotional] responses.

You notice how he never adds anything constructive to the dialog, but almost without exception, his messages always lead to multiple responses of ridicule and/or rage.

Gotta do what ya gotta do to keep traffic glued to the site, right?
TeleGone 12/4/2012 | 9:40:41 PM
re: Startups Prepare for Pitchfest Things can not be any worse in this Telecom Corridor. Nowadays people from Alcatal, Nortel, Eriksson, and many other startups who still alive are talking about close instead of lay-off.

I am very pessimistic, because I just could not see any sign of improving. Actually, now everyone are outsourcing engineer jobs to India, and I can only see this trend continue even there is a industry recover.
cplayer 12/4/2012 | 9:40:44 PM
re: Startups Prepare for Pitchfest I think you are out of your mind BobbyMax. What commission are you talking about that VCs get? Why should VCs be concerned about the nation's economic interest? They are concerned about their own economic interest. If they pick the right technology to back they will be made richer while benefiting the nation's economy. If they pick the wrong technology they will be made poorer while still benefiting the nation's economy. VCs want to make money like any one else. They saw an opportunity in the telecom industry in the late 90s and funded a bunch of companies. This caused tremendous employment. They didn't force anyone to leave whatever industry they were in and join the telecom industry. Market forces did that and everyone went along for the ride. It was fun while it lasted.
rjmcmahon 12/4/2012 | 9:40:50 PM
re: Startups Prepare for Pitchfest So why, may i ask, are you wasting your time
on this site? and even taking the time to
post?
_______________

Because he is stuck, living in denial, and is asking others for help in the only way he knows how. We can kick him while he is down or we can help him stand up.

So the question really becomes why do *we* ridicule somebody who is asking for our help? Our own insecurities is no excuse.
lightreader 12/4/2012 | 9:40:51 PM
re: Startups Prepare for Pitchfest "optical industry does not much interest"??

So why, may i ask, are you wasting your time
on this site? and even taking the time to
post? "maybe you not much interest"?
BobbyMax 12/4/2012 | 9:40:55 PM
re: Startups Prepare for Pitchfest It is very strange at a time when Optical Companies are closing down here in the US and abroad. These group VCs must be out of their minds to engage in activities and unproductive. These VCs just want to make commissions. Nation's economic interest are not their minds.

Optical industry does not much future. There may be some marginal interest in optical networking in the man environment.

The VCs activities are not very helpful in that they have caused tremendous unemployment and have destablized the telecom industry.
lastmile 12/5/2012 | 1:00:06 AM
re: Startups Prepare for Pitchfest Reference Msg#24 9/29/2002
'Remember the flintstones with their video phones. Yes that is fiction but that will soon become a reality.'
http://news.com.com/Vonage+goe...
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