A VC in Vacationland

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In the mid 1970s, I spent some time in London, working with my Data Resources partners to build a European auto and transport consulting practice. It was an interesting time in the UK–industry competitiveness was at a new low, Margaret Thatcher had just become Leader of the Conservative Party, but not yet Prime Minister and the Labor government was looking for new solutions to get the economy back on track.

I was asked to meet with members of the commerce committee of the House of Commons to discuss how England could regain competitiveness in the global auto industry.  We spend a few hours throwing ideas around in a generally bored group who did not seem that interested in finding any solution. When we finished, the members invited me to the "canteen" for a spot of tea. Once seated, the chairman asked, "China or India?" It took me a few seconds to realize he was asking about which type of tea it wanted….

Remembering that meeting recently got me thinking about the implicit reference to "empire" and the fact that the British once exerted huge influence over the economies of both China and India. And they became fond of many products from those countries in the process. In the 1970s, however, they were reduced to trying to keep a few auto plants open in England.

Move forward 40 years and we have the same question–China or India? Which economy will provide the growth engine for the next 50 years? Will the US be able to have any influence over these economies going forward? What positive or negative role will these economies play in aiding the overall growth of the world economy?

These are issues that should be on all entrepreneur's minds.  For example, has anybody noticed that Facebook is an irrelevant social network in China and India?  And will never likely be one?  This will surely  have a big impact on their growth and valuation going forward.  If you are going to be successful in the new world order, you will need to succeed in these countries as well as in North America.

My advice?  Even for the newest of the new startups, if you think you might want to go global, study how web applications for your idea will work in both China and India.

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