New York, October 12, 2009 – Just 17 venture capital funds raised $1.6 billion in the third quarter of 2009, according to Thomson Reuters and the National Venture Capital Association (NVCA). This level represents the smallest number of venture funds raising money in a single quarter since the third quarter of 1994 when 17 funds were also raised and the lowest level of dollars committed since the first quarter of 2003 when $938 million was raised.

Source: Thomson Reuters and National Venture Capital Association News Release (October 12th, 2009)

In preparing for the December 14th PI Window on Business Segment titled “Foreign and Domestic Venture Capital Investment: Opportunity Versus Choice” in which I will be interviewing U.S. high tech entrepreneur and investment expert Brad Feld regarding the key factors that influence VC investment decisions, I re-read my research material.

This of course included reviewing the CATA video in which the association’s president John Reid interviews lawyer and Chair of the law firm Fraser Milner Casgrain LLP’s Technology Group, Thomas A. Houston.

What was interesting about the video, which CATA has made available for download, is that upon initial viewing Houston cites a number of interesting statistics including the fact that the Q3 capital investment level was at a 14 year low, with the Province of Ontario experiencing an 87 percent drop compared to the same period a year earlier.

Houston went on to state that foreign investments in Canada were off the previous year’s pace by 24 percent and, according to a report by Deloitte’s, Canada is ranked as one of the most unfavorable countries in terms of “welcoming” foreign investors.

While there are several reasons for the drop, which we will get into momentarily, the video and corresponding CATA press release assigned the blame for the decline exclusively on the Sector 116 clearance certificate requirements.  Specifically, that the “Section 116″ clearance certificate” is required for every investor in a US venture fund.”  The fact that many funds have “dozens or even hundreds of investors,” according to the CATA release means that a “single stock deal can literally require hundreds of applications and hundreds of signatures.”

Referencing one such case in which a US venture capital firm required “almost 900 signatures” in connection with a single transaction, it is not a stretch to imagine that out of touch bureaucratic process is the single most important obstacle to Canadian firms receiving much needed capital from US-based investors.  But is this really the case or, are there other factors that have been overlooked in terms of the admittedly sharp decline in foreign investment such as the continuing fallout from what the National Venture Capital Association (NVCA) referred to as the “wake of the past year’s financial crisis?”

After all, and as cited in the opening paragraph from today’s post, the Reuters/NVCA October 12th News Release indicated that “venture capital fund raising activity” in the U.S. “registered the second consecutive quarterly decline in the third quarter of 2009.”  This according to statistics represents the “smallest number of venture funds raising money in a single quarter since the third quarter of 1994.”  Correct me if I am wrong, but I do not believe that the US has a Section 116 clearance certificate requirement.

I am of course not suggesting that the clearance certificate issue is not a contributing factor in what is a significantly larger issue.  Having to fill out the required tax forms to collect our company’s fees for speaking engagements in the States or face the mandatory withholding tax is not something that I enjoy doing.  But putting the aggravation aside, it has not deterred me from continuing to accept invitations to speak in the US.  This is where the creditability of the CATA message is somewhat diminished.

As is often the case, we tend to over-simplify a complex issue by picking a convenient target that can be readily if not accurately hung in effigy.  We heard this in my interview with Stockwell Day regarding the Buy American policy which as it turns out had less to do with actual economic reasons and more to do with Congresses concerns surrounding public opinion during the dark days of the financial crisis.

The over simplification viewpoint is further fueled by the fact that neither CATA nor Mr. Houston took the time to explain why the Section 116 clearance certificate was incorporated into the tax act in the first place.  Nor did they bother to explain what if any consequence in terms of the broader picture a “simple amendment of the tax act” would have from a big picture perspective.   Even if the desired amendment was in fact made to the Canadian Tax Act, there is no guarantee that the floodgates of foreign capital investment would suddenly open in a wave of needed funding.  Once again, refer to the Reuters/NVCA News Release.

While Reid makes reference in the video to the availability of corresponding white papers and other documentation supporting their position, one would think that even a general estimate of the dollar amount of lost investment as a result of Section116 would have been provided instead of the “900 signature” example.  If I am not mistaken, the reference to the firm having had to obtain 900 signatures would seem to suggest that despite the “onerous” condition they still went ahead with the investment.

This is one of the main reasons why I am very much looking forward to Monday’s interview with the US-based Feld, whose 20 years as an early stage investor and entrepreneur will likely shed the needed (and balanced) light on this issue.

As is likely the case with anyone who has been following this story, I am more interested in the questions that haven’t been asked and answered versus what is understandably the somewhat biased views of an association whose membership is in a sector that is desperate for cash.

Remember to use the On-Demand Player below to tune in to the live December 14th interview with Brad Feld.

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Tune into hear Jon talk about his experiences and of course his new book on the following shows:

December 5th, 2009 – Interview on Black Belt PowerPOD with Jim Bouchard

December 3rd, 2009 – Book Lovers Cafe

November 6th, 2009 – The Originators: Building Your Credibility and Influence by Podcasting

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If you have or are planning to pursue government contracts, then today`s interview with Mark Amtower is a PI Window on Business segment you will not want to miss.  Use the On-Demand Player below to access the `live`broadcast in its entirety.

Yesterday evening I had the opportunity for the first time in quite awhile to watch David Letterman – the benefit of being a streak writer in that I was up at 3:00 AM and therefore caught the west coast telecast.

As always Letterman was graciously facetious, especially when talking with Barbara Walters about Sarah Palin who had cracked the 2009 list of Walters’ 10 most fascinating people.

The Palin commentary aside, what stood out for me was Walters’ response to Letterman’s query regarding the Tiger Woods situation and the possible impact on his image.  Relating the story that he had always directed his young son’s attention to Woods’ accomplishments whenever the champion appeared on television, suggesting Woods’ obvious status as a role model, Walters made the statement that “athletes are not role models.”

Perhaps given the venue, and what is obviously a warm and longstanding relationship between he and his guest, Letterman failed to delve further into Walters’ comment for clarification as to what she meant.  I of course am interested in understanding the thinking behind her comment.

For example, was it a general statement in which she is suggesting that the public places too much emphasis on the on-field/off-field exploits of athletes when there are others who are more worthy of our attention?

Perhaps it was a reflection of her personal disenchantment with what is admittedly at times the somewhat childish behavior of spoiled brat millionaire athletes whose actions have finally tarnished beyond redemption, the image of the sports icon as a viable role model?

While lauding the proactive response of Letterman in terms of his getting out in front of the story regarding his own escapades, Walters expressed the opinion that Woods’ time had passed in terms of his speaking publicly regarding his recent tribulations.  This might lead one to think that it is not in the fallibility of our human nature and the resulting actions that diminishes ones brand, but is instead an inability to stand up and take personal responsibility?

Regardless of the reasons for her comment, in this emerging world of social media in which one’s “personal brand” is becoming increasingly important, one thing is certain . . . our name is our calling card within our own sphere of influence.  Or as branding expert and PR genius Marsha Friedman put it, to a certain degree we are all celebrities within the world in which we live and work.

At the end of the day, whether intentional or otherwise, this may be the very point of the Walters comment regarding the fact that athletes are not role models.  Specifically, instead of looking to others as the source of motivation and responsibility for setting a good example, we should focus on own efforts to be a positive force for those with whom we come in contact on a daily basis.

What are your thoughts?

The time has come. You know the drill. End-of-year giving is as American as former Vice Presidential candidates releasing books named after Nissan vehicles. The Earth is still somehow bankrupt and we’re pretty realistic about that. We’re pretty sure that’s not helping this blatantly obvious appeal for cash. Everyone’s broke. Except for those top 1% folks. (Brother can you spare a billion dollars or so? Please?)

Then again, what a year it’s been advocating on behalf of 5M Americans. We hit 43 US chapters, over 100,000 members, 30,000 listeners for The Stupid Cancer Show. The Barenaked Ladies headlined at the 2nd Annual OMG Cancer Summit, The 3rd Annual Stupid Cancer UnGala raised $20,000 and our partnership with StandUp2Cancer made headlines. Plus our inaugural leadership retreat was game changing! And let’s not forget about those wristbands – over 20,000 sold!

The “Stupid Cancer Movement” is still giving cancer the bird and kicking it’s ass, changing lives and keeping our voices heard loud and clear on the national stage. In truth, we are making a huge dent, empowering thousands and ensuring that the next 30 years will be nothing like the past 30 – where the young adult voice was not heard and made no difference.

It’s our time. It’s about time. So, if you can, please give. Thank you.

Stupid Cancer Show Matthew Zachary

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The PI Window on Business Show, Radio Has Never Sounded Better!

Series Description:

It would be difficult for me to actually provide a number relative to how many times I have referenced the problems associated with what I refer to as an eroding supply based.

Over the past few years, and more recently within the pages of this blog or on the virtual airwaves of the PI Window on Business Show, I have talked about the challenges organizations in both the public and private sectors are facing in terms of the increasing level of supplier cynicism as it relates to the RFP process.

From misaligned vendor rationalization strategies (Kraft Foods and Procter & Gamble take a bow), to overly aggressive low-cost country sourcing initiatives (how is GM doing these days?), to the reports I received from a former director with the Government of Canada’s SME office who talked about the need for the government to view suppliers as being as much a client to the public sector as the public sector is to them, the City of Ottawa’s recent acknowledgment regarding the paucity of supplier responses to RFPs should surprise no one. In fact, what should be considered surprising is why the true breadth of the problem is not discussed with greater frequency and in wider circles! Especially with the economy going south last year.

As we discovered during my extensive coverage of the Commonwealth of Virginia’s legislative (JLARC) review of their eVA procurement program, many suppliers are starting to turn to the public sector once again as a possible venue through which to generate much needed revenue. So increased awareness of the problems that led to the migration of suppliers from participating in the government tendering process would seem both prudent and timely.

In this regard, and taking into account all the articles that I have written on this subject, a post that I wrote on December 13th, 2007 continues to be one of the most widely read. Titled “The Bands of Public Sector Supplier Engagement,” it provides an interesting look at the supplier hierarchy within the realms of public sector procurement practice, and the fact that like erosion itself the problems that are now coming to light have been a long time in the making.

Judy Bradt

This is why this special seven part series in which I am joined by Judy Bradt who is an expert author, speaker and consultant on how companies can capitalize on the emerging opportunities in the US public sector is so timely.

As the Principal of Summit Insight in Washington DC, Judy’s been covered by national media including SBTV, ABC Radio, the Financial Post, Fortune Small Business, and Entrepreneur Magazine. From 1988 to 2003, Judy was the top specialist in US government contracting at the Canadian Embassy in Washington DC.

Leveraging her more than 20 years of experience advising more than 6000 clients on success in government contracts that collectively have accounted for revenues in excess of $300 million US, Judy will take us through her critically acclaimed “Seven Steps to Success” presentation. As a supplier you will gain the necessary insights to shorten the timeline between the response to government tenders, and the realization of tangible revenue. As a government procurement professional, you will find the answers to why bid responses have been declining and with it the value in both pricing and quality of service.

Starting on Monday, January 18th between 3:00 and 4:30 PM EST, the first of seven parts will be a special 90 minute segment in which we will provide a 30 minute general overview of the current state of Government Contracting. In the remaining 60 minutes of this initial broadcast we will then delve into the specifics of each of the seven steps starting with Strategy.

On every second Monday from that point on we will review the remaining steps which include; Focus, Process, Competition, Teaming, Relationships and Marketing.

What makes the PI Window on Business format ideal for this type of information series is that all segments are recorded and made available on an on-demand basis. This means that the intervening two weeks between each segment broadcast will give you an opportunity to tune in the previously aired show at your convenient. In essence you will be able to stay current according to your schedule versus the live broadcast schedule.

Like the first segment, the seventh segment will also be a 90 minute special in which we will open up the phone lines in the last 30 minutes for you to call in with any questions you may have regarding the series.

Scheduled Broadcasts:

Segment One (Government Contracting Why? and Step One: Strategy) – Monday, January 18th, 2010 – 3:00 to 4:30 PM EST
Segment Two (Step Two: Focus) – Monday, February 1st, 2010 – 3:00 to 4:00 PM EST
Segment Three (Step Three: Process) – Monday, February 15th, 2010 – 3:00 to 4:00 PM EST
Segment Four (Step Four: Competition) – Monday, March 1st, 2010 – 3:00 to 4:00 PM EST
Segment Five (Step Five: Teaming) – Monday, March 15th, 2010 – 3:00 to 4:00 PM EST
Segment Six (Step Six: Relationships) – Monday, March 29th, 2010 – 3:00 to 4:00 PM EST
Segment Seven (Step Seven: Marketing) – Monday, April 12th, 2010 – 3:00 to 4:30 PM EST

Series Sponsor:

"Building Bridges"

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You know the old saying that you can’t tell the players without a program at a sporting event.  For those of you who are interested in following the PI Window on Business Show from the host’s seat, we are happy to provide an advanced copy of the questions that I will be asking my guest(s) during the actual live broadcast.

To obtain your copy, subscribe to the PI Window on Business Blog here or through your Facebook community.

Refer to the bottom of the right hand index of the main page to subscribe. There are no fees associated with your subscription.

Remember to also check out my new book “Your Show Will Go Live in 5 Seconds (Confessions of a Blog Talk Radio Host),” which is now available in both hard copy as well as eBook format.  Click on the book cover below to order your copy today.

Hard Copy Version Now Available

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“Chance favors the prepared mind.” (Note: Pasteur’s actual words were “In the fields of observation chance favors only the prepared mind.”)

I doubt that when Louis Pasteur first uttered these words during a Lecture at the University of Lille on December 7th 1854 he had envisioned the interdependent, globally connected world within which we live today. A world in which opportunity through the advent of social media and networking have almost and unexpectedly fuelled a far reaching paradigm shift in which the individual and not the conglomerate can reach out and have an impact on the world around them.

However, with the expanded means that is afforded us through social media, leveraging the insight to effectively capitalize on the opportunities are critical elements for ultimate and enduring success.

It is only when these four factors come together, or are aligned, that the desired results are actualized.

In the world of public sector procurement, to many SMEs the prospect of pursuing government contracts is an exercise in futility that for the majority of buyers, has manifested itself in steadily eroding supply bases and a paucity of RFP responses to bid requests.

Having spoken and written extensively about this subject in North America as well as overseas, it is difficult to reconcile the unbridled opportunity referenced in the above paragraphs to the world of government procurement. However, an opportunity does exist.

Enter Mark Amtower.

Mark Amtower, founder of Amtower & Company, is widely recognized as the leading authority on marketing to the government. He is a consultant, speaker, author, CEO coach, audio program producer and radio host focusing on one market – Government. Known as “Godfather of government marketing,” Mark Amtower is credited for mentoring hundreds of current B2G marketing professionals.

In today’s show we are joined by Mark Amtower to talk about his role in assisting SMEs to develop and capitalize on the opportunities that exist within the realms of government procurement.

Mark Amtower: Consultant, Speaker & Author

About Mark:

Mark Amtower, founder of Amtower & Company, is widely recognized as the leading authority on marketing to the government. He is a consultant, speaker, author, CEO coach, audio program producer and radio host focusing on one market – Government. Known as “Godfather of government marketing,” Mark Amtower is credited for mentoring hundreds of current B2G marketing professionals.

Amtower coaches C-level execs, consultants and entrepreneurs in several areas: thought leadership, writing – especially writing your first book, and getting publicity. He has produced audio programs for each of these areas.

Since his first public seminar in 1991, it is estimated that over 20,000 have seen him speak either at Amtower & Company events or the many conferences he speaks at each year. Ten of thousands more have heard him on his radio show, during one of his frequent guest appearances on other talk shows around the country, or at one of the many presentations he makes at various business conferences each year.

Widely known for his candor and wit, Amtower has been quoted in over 100 business publications. He also writes for many business publications and web sites. His bi-weekly e-newsletter, The Amtower Report, is read by thousands.

In January 2005, Amtower published Government Marketing Best Practices, based on his most popular seminar of the same name. His second book, Why Epiphanies Never Occur to Couch Potatoes, came out in November 2007.

Amtower is on the Board of Advisors for The American Small Business Coalition, The Profitability Channel (web TV for small business), and TSI (an Annapolis, Maryland company).

Amtower Off-Center airs Monday at Noon on WFED AM 1500 in Washington DC and can also be heard via simulcast and in the archives at www.FederalNewsRadio.com.

Mark’s Latest Book:

About Why Epiphanies Never Occur to Counch Potatoes; This book started as a lunch speech called “Amtower’s Laws of Survival and Success” at the July 2005 Merit Direct Business Coop in Westchester, NY. Over time, these evolved into the core of the author’s business and life philosophy, the rules that govern his conduct. The Merit speech was the first public utterance of these, giving people who knew his work a chance to see why he is the way he is. These simple rules have been the basis for his conduct for two decades.

A global perspective on the year just past and the year ahead from the world’s largest community of shared services and outsourcing professionals, SSON.

When I was recently contacted by SSON’s Jamie Liddell to provide my thoughts on “The Year in Review ” for 2009, as well as “The Year Ahead” in 2010, relating to shared services and outsourcing I must admit that there was no shortage of ideas and reference material.

Shared Services & Outsourcing Network

The Fersht interview, which originally aired on June 24th was interesting on many levels, not the least of which was the fact that according to industry studies two-thirds of all outsourcing programs fail to achieve the expected results. While there were a number of reasons that had been cited and discussed for this dismal track record during the 45 minute interview, one of the most telling revelations came from the fact that even though organizations were looking to increase their activity in this area, few companies were actually going beyond the rob Peter to pay Paul mindset that led to the failures in the first place. Specifically, becoming disenchanted with outsourcing services through domestic providers, organizations repatriated development internally through the engagement of overseas providers from countries such as India.

The problem of course is that the change in geography did little to address the origins of the problems with domestically driven initiatives, which is the client’s abdication of responsibility for managing the process. In other words, success with outsourcing will continue to be elusive if companies insist upon assuming a spectator role in their own business process improvement programs.

Recognizing these challenges and their overall contribution to the poor results, companies are now starting to turn toward solution providers that can facilitate without intimidating the management process, which was reflected in the PI Window on Business “Emerging Giants: Future Titans of the SaaS World series.”

In particular, the August 20th segment in which I interviewed Blueprint’s Senior VP and CMO Matt Morgan. Morgan discussed at length the emergence of “visual requirement definition” as well as the myriad of other tools that are now available to organizations who want to gain access to needed resources without losing control of the development process.

While organization’s assuming greater responsibility and control for their outsourcing projects in 2010 will continue to be the trend, the question as to level of outsourcing activities beyond the domestic landscape remains to be seen.

On September 30th I welcomed both Canada’s Trade Minister Stockwell Day and an international guest panel of experts that included IACCM’s Tim Cummins to discuss the impact of the Buy American policy on both the domestic and international economic landscape. During the 90 minute special, Tim made the prediction that outsourcing activities would begin to shift away from India to South Africa where, as he put it is a nascent outsourcing sector that will make it the new preferred destination for companies looking to outsourcing for improved process performance and bottom line savings.

Whether this transformation will shift into high gear in 2010 or the year after is yet to be determined. However it is safe to say that 2009 was the starting point, and that 2010 will be the year of transition.

This latter point of course demonstrates how outsourcing activity extends beyond the sector itself to encompass and impact global economies.

As I had discussed on the PI Window on Business Show, and both the Procurement Insights and PI Window on Business Blogs, the Clark and Fourastie “three-sector hypothesis of industry” (which is now four with the advent of high tech and R&D industries) as it relates to the development of a wealthy nation’s economy, demonstrates outsourcing’s economic impact . (Note: the now “four industry sectors” of the hypothesis through which a wealthy nation must progress to maintain its economic position includes the extraction of raw materials (Primary), manufacturing (Secondary), services (Tertiary) and later knowledge-based (Quaternary). Outsourcing encompasses elements from both the third and fourth sectors.)

Referring once again to India, the advent of that country’s rise to prominence as a preferred outsourcing destination for American firms, each of which have committed to investing $1 billion into its economy, has significantly impacted its standard of living. In fact studies show that India has seen double-digit wage growth for much of the 2000s.

The critical points to consider regarding the India case reference is that outsourcing is a key cornerstone of the Tertiary and Quaternary sectors that are essential to a nation’s economic viability and ongoing strength. How this plays out during 2010 and the ensuing years will likely have a significant influence on the global economy as a whole, especially if predictions such as the one by IACCM’s Cummins forecasted shift from India to South Africa materialize.

Given the above, it is safe to say that as we move further beyond 2009, we will one day come to see it as a pivotal year of change that like 2010 will represent the bridge between past failures and future success on multiple levels of what is a complex industry.

For those of you with a penchant for keeping score, here are the links to the 2008 review and 2009 forecast.

Year-End Special PI Window on Business

I thought that it would be a great idea to share the global view of where Shared Services and Outsourcing has been, and where it is headed in 2010 and beyond with our PI Window on Business Show listeners.

Joining me from the land down under for a special PI Window On Business segment on December 30th, is none other than SSON’s own Jamie Liddell, whose highly popular annual review feature is certain to both inform and inspire debate.

Please note that the start time is 10:00 AM EST on December 30th, versus our usual 12:30 PM slot on the Blog Talk Radio. Remember to access the Live broadcast through the On_Demand Player below.

MIT Professor Yossi Sheffi extended the resilience concept to business continuity initiatives in his 2005 book The Resilient Enterprise.

Dr. Sheffi analyzed how disruptions can adversely affect the operations of corporations and how investments in resilience can give a business a competitive advantage over entities not prepared for various contingencies.

Business organizations such as the Council on Competitiveness have embraced resilience and have tied economic competitiveness to security. The Reform Institute has highlighted the need to enhance the resilience of the supply chain and electrical grid against disruptions that could cripple the U.S. economy. Many corporations are adopting resilience and business continuity initiatives and sharing best practices. Many experts and leaders see resilience as a vital component to a comprehensive homeland security strategy.

Hurricane Katrina demonstrated that not all catastrophic events can be prevented and a focus on response and recovery is needed.*

The real question however may be whether or not we are focusing on resilience with regard to external factors or occurences while perhaps overlooking the internal resilience of individuals within our own enterprise?

Over the past few weeks we have discussed the impact of the economy on individuals within the workforce, and the growing cynicism of corporate motives that has accompanied the steady decline of the cradle to grave security that was for many years the hallmark of being a company man or woman. This raises the question is corporate resilience aligned with individual employee resilience?

Joining me to talk about this fascinating and even worklife-altering segment is the author of “Managing Employee Stress and Safety” and renowned expert in the stress management and resilience field for over 25 years, David Lee.

David Lee, Author and Workforce Resilience Expert

About David:

David Lee is the founder of HumanNature@Work. He is an internationally recognized authority on practices that optimize employee performance, and has worked with organizations and presented at conferences both domestically and abroad. He is the author of Managing Employee Stress and Safety, as well as over 60 articles that have been published in trade journals and books in North America, Europe, India, China, and Australia.

He has held positions as clinician and trainer int he healthcare field and as a supervisor and trainer in the corporate world. He has worked in the stress management and resilience field for over 25 years. His program, “Becoming Resilient” has been aired on public radio several times.

Go to HumanNatureatWork.com for dozens of articles on how to optimize employee and organizational performance, including: “Are You an Upper of a Downer to Others,” and “Keeping Morale High in Difficult Times.” 

This PI Window on Business segment airs December 9th between 12:30 and 1:30 PM EST.

* Source: Wiipedia

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