Large Image

Most software sales people are like ventriloquists. They demonstrate software that looks the part but is often pretty dumb. They make it look clever by presenting it professionally and filling in any gaps in actual functionality with promises and distractions. We've all seen it before - software solutions that run best on PowerPoint. But occasionally you get to see a solution that stands up by itself and delivers. It just works.

In my last piece I finished with a throwaway remark “And there’s another thing: social media – don’t get me started….”. That quip generated more private correspondence than the rest of the article. I have been around the internet for a long time – long enough to remember when Mosaic was the hot new kid on the block. Many of my attitudes were formed then, by the absorption of ‘netiquette’ (remember that?) through cultural osmosis and also through a willing acquiescence in the projection of West Coast psychedelic world views onto the emerging medium (feed your head with John Markoff: What the Dormouse Said). To this day the ongoing bending of the internet to the will of corporate and political interests is a continuing source of profound disappointment.

Startups and young businesses thrive when their people do their jobs because they want to change the world, they want to get rich or they want to do what they love to do. But as they grow, founders execute their exit plans, hopefully happily, and the accountants move in. The business drivers change. The raison d’etre becomes about numbers and regulation. They’re either fixated on quarterly earnings figures or obsessed with compliance. They get third parties in far flung places to run their back office, even core business activities get outsourced and offshored. The business stops being about the hopes, dreams and ambitions of its people. They even outsource them.

[caption id="attachment_6736" align="aligncenter" width="480"] Bertram Meyer - CEO Taulia[/caption]

The British can make strong claims to the invention of the computer (Babbage) and the World Wide Web (Tim Berners-Lee) but examine the DNA of the modern world of technology and it's mainly American with a strong Northern Californian flavor. Ariba, Oracle, Google, Twitter - Silicon Valley born and bred.

But it's not just Americans that are behind this innovation. This phenomenon has more to do with geography. Two of the most interesting innovators in the P2P space, Taulia and Tradeshift, although San Francisco based, are European - well their founders are. Why is it so important, indeed, is it important, for tech start-ups to have a Bay Area address? I was in San Francisco a few weeks ago and took the opportunity to speak to Christian Hjorth, Head of Sales at Tradeshift and Bertram Meyer, CEO of Taulia to understand why Silicon Valley is still important.

The cost of credit to many businesses is so high that it threatens their continued existence – that’s if they can get credit at all. And it’s not just a problem for them – it affects their customers and their suppliers. The full extent of the supply chains within their industry is affected. But it need not be like this. By taking a fresh view of risk, that cost of credit can be reduced significantly. We’ve taken a detailed look at OB10’s Express Payment offering to understand how this new way of trading can work in practice.

Last month David Cameron announced a valiant government sponsored initiative. The primary objective of the UK-backed program is to provide small businesses with much needed access to liquidity - put in simpler terms: to pay small businesses faster. If you're unfamiliar with the current global economic environment, large organizations are taking longer and longer to pay their suppliers. In many cases, suppliers are paid 90 (or even 120!) days after they provide goods and services to their customers. This has been the case for many years. If you’re wondering why, the answer is money.