Reply #8: Palestinian Entrepreneurial Class

[Coastie for Truth]

About five-six years ago I spent a week in a lawyers' conference room with eight Palestinian "IT" entrepreneurial software types. Just like the silicon valley types. They had a good product, some pending patent applications, a good business plan, and a good pitch. I really like these guys. And, I wanted to see them do well. BUT NO MONEY.

Their biggest problem in raising money (and this was when some VC's were still throwing money at anybody with a copy of "JAVA for Dummies" and a Microsoft "J++ Software Developers Kit" ) --- was two fold:

1. The total corruption of the PA (they would have had an easier time if they stayed in Cairo - which they eventually did).
2. The "war risk" premium - which was only exacerbated by the talks of "divestment" and the terrorism.

Good news - they did get money, their business "thrived" -- and like all smart IT start ups -- they sold out to an 800 pound gorilla.

Bad news - the corruption and the "war risk" and the divestment talk scared away even more money.