Jurvetson: Perfect Time to Invest in Startup

" Welcome back everybody live from Cisco Systems here in Silicon Valley for -- three of our three days of the valley coverage. Forbes magazine once said about my next guest in a town full of risk takers Silicon Valley venture firm Draper Fisher Jurgensen. Is one of the biggest gamblers of all. How lucky that we have to with the gamblers here with us from that her. Tim Draper and Steve -- and joining us once again the telethon this year where you're putting your money now one year later she got -- with us last year your back now how's everything going. Well I I think case."

" It's going great this is sort of the perfect time for venture capitalists is. When the entrepreneurs -- that their greatest. And the and then there's there's less money around and there are fewer competitors and the and the big companies are always looking now. They're there in shock the big companies are in shock and they're now looking for what's better cheaper and faster and that means they're moving to our startups for new product."

" I find this. Almost hard to believe what to his sayings -- you what do you mean it's the best not to venture capital firms all I'm hearing is that people are. Losing partners at these BCC firms there are fewer investors. So I'm rob he's right now we're hearing of this."

" It's an exact it's by no means easy for everyone. But if you aren't business investing start ups and if you're starting company now there is no better time there's less competition from other starters there's less competition for us investing those companies and frankly. A more healthy kind of firms built in the down market companies like Microsoft who packed and others were started during recessions. In at least two way of building -- business books and customers rather than investors such as healthy. When -- get to hear all the news about Chrysler what add the word bankruptcy comes up what. It jumps into your mind. Well okay what we did we look at is a blip on the screen I know they're a lot of families that are really suffering because of this and and they're all in one location. But we do see bankruptcies quite. Quite busy a lot of confidence that -- business we see a lot of companies that fail. But it's those few successes. That employ many many people that make it all worked."

" Why would you have put your money toward companies that definitely has succeeded many of them have been profiled here on Fox Business like. Iran must Tesla motors or solar city now goes to our our hits out of the ballpark so far they're working. They've looked to be making money but tell me where you're putting your money nasty."

" Sure we're looking at a variety of sectors more diverse never before in energy clean tech and the Internet even and rockets let's face facts. A home there are an amazing amount of creative ideas coming through the -- and suddenly be one example. He think about a business we -- understand search and can be done so much better if you did -- the way Skype did it for telephony we have a bunch of computers tied together to provide phone network instead of eighteen T. You can ride a better service globally for free. Similarly in search be tied together all the computers and see where people are searching what -- is a popular right now you can create a better search experience less down. Vulnerable to being gained than Google and other -- helps us accompany your -- gas -- WOWD. That is doing this they've built the search engine where there's no servers there's -- web callers it's distributed across all the desktops people on the planet -- it's better search experience."

" Is he -- town but they're going to take it on the -- and Google an and then Microsoft just watched big. Movie company wow that's going to take these guys on I."

" So actually we are always investing in the next generation Google's been around long time now and it's time for serve them. That there replenishment. Of the technology. And this is a better way to search so eventually yeah we're going to be better off with loud what's your favorite company your back and right now. Well how web glam because they've taken all the bloggers and they brought them all together and and they saw advertising now blog sites. And glam has become. Maybe you say pearl. In a very short period of time so we're very excited about that movie also excited about -- Which is going to be a new way or is a new way. You know we we're we're. Reinventing. Search but we're also reinventing marketplace so. Which Texas like the next few days."

" We just got the Beige Book numbers and and I was talking you've got to sit."

" The Beige Book that you sent -- visited what does that picture and a -- blue book from I don't know what. TARP now not gotten them to durable goods numbers -- nothing like I've heard of durable goods but we're all sort of -- invented this institute for supply management."

" Please okay Ben Bernanke."

" I've heard about."

" My point is a good job. I want you could. Is that that you guys are are looking at ideas innovation. And an entrepreneurial spirit at a time where a lot of the company in the country rather is suffering. -- to not all up."

" And well we we have seen so many cycles. We've seen the boom and the bust the Internet that bubble. We've seen we saw a big boom and bust before that I mean I was I was around during that time -- plus. And now we're seeing another boom and bust and that does happen. And so we realize that our business is funding these new technologies. And they keep getting better and better and there are and most technologies accelerated. So if it's growing exponentially."

" As we finish upstate you think we should be letting more companies fail versus propping them up. We it's always easiest. The political sense to provide support to the industries and businesses in the past. But we know that the future belongs to new entrants the young people in new companies that will define our future and ten years -- Tony -- most important businesses will be when you could mean today. And it's more important setting up a framework almost the constitution for the growth. That is the problem the past if you support failure you get there if you support success begets success. If you want to continue to support bank."

" Drug companies you're gonna get more bankrupt him. We'll be watching what you prop up in the future with your venture capital money feature but -- Tim Draper and Draper Fisher is nervous and great to see you guys like frat -- let me just to -- they've they've they've all a lot of money -- really watching -- figuring out as a brilliant entrepreneurs are in Silicon -- everybody is knocking on their -- we'll have much --"