Key points arising from discussion:
Regarding the Demise of the Euro
1. Businesses had not changed strategy or tactics due to the Euro crisis. However some companies have tightened their contract positions around currency and payment terms.
2. Whilst not in the press so much given the €1tn injection to the financial system the crisis is still here and we in Cambridge do not hear about. Stories of Spanish pharmacists not being paid, teachers not being paid etc. same for Italy.
3. Overall sentiment was this is a macro issue and not a micro issue yet.
4. Some Chairmen had seen benefits from the euro crisis resulting in UK people staying in the UK and spending here rather than abroad. Also recruitment of Southern European talent has eased.
Discussion also focused on trade sales and IPOs.
1. US IPO market is open. Europe is not as open yet. Feeling was we will be there in 18 months time
2. Trade exits looked highly likely. One investor had 11 profitable exits in 2011. Best year for a decade. Also common agreement that due the balance sheets of US and European companies was the best ever. Top ten US tech companies have >c.$500bn of net cash on their balance sheet for example.
3. Good Chairmen were annually looking at the options for IPO and trade sale.
4. Interesting to see China companies going straight to NYSE and questions whether we should be doing the same.
Bailey Fisher’s next Chairman Dinner will take place in June 2012 – details to be confirmed.
Bailey Fisher’s next networking event will be the first in a series of events for CEOs of high-growth technology companies. Panel discussion on Technology, team, investment: looking beyond the obvious. Panel of speakers: John Cronin – serial CEO & Chairman, recently appointed Chairman at Cyan Technology, Andrew Davison – Investment Director at Scottish Equity Partners & Chris Winter, Partner at New Venture Partners. Chaired by Zickie Lim, Partner – Mills & Reeve. St John’s Innovation Centre, 17 May, 6-8.30pm.
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