• Articles
• Publications
• Speaking Engagements

 

News

Publications

April 13, 2001

Letter to the Editor

(in response to article, "Safeguard: Not the only game in this town The Philadelphia (tech) story" on March 23, 2001.)

In spite of the fact that Safeguard is certainly not the only game in town, we need to be aware that the perception of Safeguard’s dominance definitely exists. 

In order to continue the Philadelphia region's rise in national prominence, we need to celebrate and communicate victories such as The Industry Standard’s (2/12/01) recognition of Route 202 as the best new place for business.  However, area technology and government leaders also need to recognize that we cannot continue to place all of our eggs in one basket, either financially or geographically. 

From a quality of life perspective, I'll take Merion over Menlo Park, Brotherly Love over Beantown, or Gladwyne over Greenwich any day of the week.  In spite of the limited amount of venture capital dollars in Philadelphia relatively speaking to the Bay Area, New York and Boston, Catavault headquartered our business in Philadelphia based on the wealth of other resources that Philadelphia and the surrounding region has to offer.    In spite of being wooed to move to Boston and Newport Beach by various venture capitalists, we are bullish on Philadelphia and elected to base our company in the City of Philadelphia.

Safeguard has done a wonderful job in providing financial capital to many area firms and developing various businesses.  However, the region also needs infusions of capital - financial and human - from other lead investors, some of whom will provide contrarian investment practices that spur competitive funding opportunities, new business initiatives, job creation and general economic wealth.  Specifically, area leaders should strive to have some prominent West coast venture capital funds open investment centers in the Philadelphia area to capitalize on the wealth of opportunities and talent here.

Notwithstanding the traffic congestion surrounding 202, the region overall should be thankful for the boom that as occurred there.  However, geographically, we must also recognize that the area's technology sector is more than just the 202 corridor.   Just as development in Silicon Valley has served as the catalyst to revitalize the urban blight that characterized the SOMA (South of Market Street) area in San Francisco, we need to and can do the same in the City of Philadelphia.  Too many firms which call Philadelphia home are based in the area suburbs as opposed to the city itself.  As the city becomes friendlier to businesses, more businesses will see the benefits of working in the city itself.

Following are some action points (in no particular order) that I think would drive success for the area:

• Attract new lead investors to have investment offices in the region; ideally from some prominent West coast VC funds
• Pool area resources and administrative agencies' work so that their power comes from a collective effort
• Invest in area firms that generate jobs here in Philadelphia
• Diversify the depth and breadth of investments by area lead investors
• Celebrate and communicate our region's successes: AirClic, Catavault, CDNOW, Cigna, Comcast, Half.com, QVC, SAP, Unisys, University of Pennsylvania, etc.
• Retain area Fortune 500 firms to keep their headquarters here; attract new Fortune 500 firms to headquarter here in Philadelphia
• Retain area graduates from top universities
• Provide more competitive more competitive salaries with other geographic areas such as DC, New York and Boston

Thank you.

Jonathan H. Bari