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TLcom Capital Partners is a London-based venture capital firm, which has been investing in communications technology companies across Europe and Israel since 1999. TLcom currently has €184 million under management with investments in wireless data, IP technologies and services and broadband enabling technologies. The portfolio includes Axerra (multi-service over IP technology), Cellglide (mobile traffic shaping solutions), Cognima (data replication for mobile networks), IXI Mobile (mobile device unbundling), PacketFront (intelligent broadband solutions) and Sphera (hosting automation and management solutions).
Giuseppe Curatolo, 36, is a General Partner at TLcom and currently serves on the Board of Cellglide Inc. Previously, Giuseppe led Draper Fisher Jurvetson's European activities in wireless communications and before that was a VP with Morgan Stanley Dean Witter Private Equity. Giuseppe holds an MBA from Stanford University.
We caught up with Giuseppe to talk about entrepreneurs, venture capital and the European communications technology market.
Q. Giuseppe, TLcom has a heavy geographic focus on Europe and Israel. Why is this?
Europe possesses a fantastic heritage of entrepreneurship in the communications technology sector. Organisations like Nokia and Ericsson for example produce real talent - and in greater numbers than anywhere else in the world. You wouldn't find a company like Cellglide for example in the USA.
Q. Is the fact that TLcom specialises within the communications technology sector important to your portfolio companies?
We invest in companies that have developed their products. Before making a decision to invest we need to ask: 1) Does the world need this? 2) Are these the right guys to do it? 3) What returns can we expect in a successful execution? The fact that we know this space means this process is quicker and easier, and a better fact-based investment assessment can be made. Entrepreneurs don't need to spend so much time educating us. Because we understand the detail, building a rapport with the entrepreneur at both an operational as well as a strategic level becomes easier.
Q. What value does TLcom provide, beyond the cash?
We are there to ensure that the company has a sound financing strategy: if the portfolio company were to run out of money, then that's our problem. We can also advise on the issues that would affect any start-up in any sector: having witnessed the patterns of successful and unsuccessful companies over the years. We can also help with staffing, industry recognition and business introductions. But no venture capitalist is the right guy to actually manage the business, and as such, VCs should recognise their limitations. VCs are like coaches on the sidelines, and usually don't have the insider knowledge to be as effective in operationally running a portfolio business.
Q. What do you look for in an entrepreneur?
The most difficult element to assess of the above three criteria is number 2: Are these the right guys to do it? Rules and VCs don't match - venture capital is by its very nature an opportunistic business. The Founders of Dell, Yahoo, Apple, Microsoft, Hotmail, SUN, Cisco were all unproven graduates. But they all showed stamina, skill, the ability to work hard - and they had not been tainted by conventional wisdom.
We therefore look for 'entrepreneurial intent'. Starting a company is the hardest thing a person can do: they'll need talent, passion and confidence in their vision - to be able to turn nothing into something. All this will need to be achieved in an environment where every penny counts, and must be spent only where it adds real value.
Entrepreneurship and youth are co-related. You want a guy who wants to make a mark in the world. Whose motivation is intrinsic. Money as the only motivator won't work: by maximizing short term financial return you'll usually get a series of sub-standard decisions that won't result in excellence (like hiring second grade, but cheaper managers). Also entrepreneurs solely motivated by money tend to be quick sellers when the business becomes promising and therefore valuable. They'll probably want to sell at the 1st offer!
To find out more about TLcom Capital Partners visit www.tlcom.co.uk Giuseppe can be contacted at giuseppe.curatolo@tlcom.co.uk.
To read the other articles in this edition, please click on the links below:
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Liron Langer is President & CEO of Israeli software firm Cellglide, which provides traffic shaping solutions for mobile data networks. Previously he was CTO and Director of NextGen Product Group of VocalTec (NASDAQ: VOCL).
We caught up with Liron to talk about traffic shaping, mobile data and the dynamics of the wireless marketplace.
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