Think the collapse of Webvan was tough for its stockholders to swallow? Tell that to Glenn Ruley, food resource manager of the Alameda County Community Food Bank in Northern California. Whatever its financial missteps, Webvan delivered for Oakland's poor: 10% of the food donated last year, about 1 million pounds of dry goods, produce, and meat, came from the now-bankrupt online grocer. "Webvan's fall has had a very dramatic impact on us," Ruley says. Shareholders know the feeling.
Now Ruley is scrambling to fill the donation gap. He plans to turn to supermarket chains such as Safeway, which already is a large donor, and to local restaurants for more food. With the tech downturn pushing the unemployment rate skyward, he may need all the help he can get. By Linda Himelstein
Texas' Power Play
Silicon Valley and Texas are no strangers to tech industry battles, but California's power crunch is lending their spitball wars new juice. A recent survey found that 17% of Valley companies might leave if energy woes worsen. Now, Texas development officials are planning a Sept. 24 tour of San Jose to lure firms to the Lone Star State. Their bait: cheap Texas power. "They hate us," chortles Saralee Tiede, vice-president of Austin's Chamber of Commerce.
Just see if geeks will move from the land of hot technology and culture to the land of hot weather, shoots back Ken Heiman of the San Jose Silicon Valley Chamber. Golden Staters are taking their own small revenge: More than 20,000 people have visited a Web page at Bay Area portal sfgate.com that lets users click off the lights of a virtual Austin skyline. Children, can't we play nicely? By Andrew Park
Strong Words. Tasty, Too
Venture capitalist John Doerr recently apologizied for once calling the Internet "the largest legal creation of wealth in the history of the planet." He wasn't alone in his hyperbolic estimation of the Net.
THE PLAYER: Geoff Yang, venture capitalist, Redpoint Ventures
THE QUOTE: On venture-capital investments: "What risk? If the company doesn't work out, we'll sell it for $150 million. If the company kind of works out, we'll sell it for $500 million. And if it really works out, it'll be worth between $2 billion and $10 billion." -- December, 1999
THE REALITY: Says Yang: "The world has changed. Have you noticed that Juniper's at $12.50?"
THE PLAYER: Heidi Miller, ex-CFO, Priceline.com (PCLN
)
THE QUOTE: "I believe Priceline can be a huge global company, as big as Citi[group]." -- February, 2000
THE REALITY: Miller left Citi's CFO gig for Priceline.com, which today is less than 2% the size of Citigroup. Eight months later, she left for insurance broker Marsh & McLennan, and declines comment.
THE PLAYER: David Beirne, venture capitalist, Webvan Director (WBVN
)
THE QUOTE: "Every Webvan distribution center goes cash-flow-positive five quarters after we open it." -- June, 2000
THE REALITY: The grocery delivery company went bust. Worse, when Beirne said this, no Webvan warehouse had been open for five quarters. Says Beirne today: "It still feels like it was a reasonable assumption at the time."
THE PLAYER: Robert Bernard, ex-CEO, marchFirst (MRCHQ
)
THE QUOTE: "A massive opportunity for Internet professional services is about to hit, and our organization [will be] the dominant leader in this marketplace, bar none, beginning in" 2000. -- December, 1999.
THE REALITY: Bernard didn't mention 2001--when marchFirst went bust. Today, Bernard declines to comment.
Corrections and Clarifications
In ``Strong words. Tasty, too'' (e.biz, Oct. 1), a quotation by Geoff Yang of Redpoint Ventures was accompanied by an incorrect photo. Yang's correct photo appears above.
Copyright 2001 , by The McGraw-Hill Companies Inc. All rights reserved.
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THE PLAYER: Geoff Yang, venture capitalist, Redpoint Ventures