There is no doubt that being at war with Iraq while trying to make sense of a roller-coaster economy make this one of the "worst" times in recent memory. Conversely, 2003 will also likely go down in history as a "great" time to start a company.

Don't take our word, ask the experts who have seen technology cycles come and go over the last 20-30 years. They'll tell you that (a) a major "bust" economy, as we have seen in the high technology markets in the past 3 years, is likely to be succeeded by a "burst" or "boom" economy, (b) ideas that are funded in bad times have a stronger potential for success because they pass through stringent hurdles and, (c) the best companies are started by frugal entrepreneurs who learn to survive in difficult times.

So, what's an early-stage venture team to do? As you'll see in this issue of The Outlook, we focus on understanding the technology buyer, reading the trends for the next 6 months and building companies from the ground up.

Got entrepreneurs? We're actively seeking to fund early-stage companies led by "repeat" entrepreneurs in the "worst" of times, and we hope after reading this newsletter, you will consider sending us opportunities in several of these areas where we can work together with you to create some of tomorrow's best successes...

The Outlook Ventures Team
March 2003