Criticism where criticism is due…





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It’s much easier to be reactive than revolutionary and critiques by definition tend to be more critical than complementary. And so it seems today with the reviews of a new government guide – Parent Motivators: A parent’s guide to helping graduates find work.

It effectively encourages parents to show ‘tough love’ towards their graduate offspring and the most rational review I have read was by Graeme Paton in yesterday’s Telegraph but today the Telegraph are on the attack via Philip Johnstone. It is a very well written article. (I myself am spending the next few days working from home and oddly my mother seems to agree with its sentiment!). Johnstone is clearly well read (and as per a previous blog I agree with him on higher education policy) but surely the report is merely a guide – not a directive – and I suspect that some parents outside of the home counties (and even some within judging by my experiences) might find it useful.

I also stumbled upon the ‘Dude Where’s My Career ‘ (DWMC) blog response which is very amusing but like today’s Telegraph article it assumes that Peter Mandelson wrote it and that he should be concentrating on other things and wasting less money (NB: I am no fan of the government but let’s not forget that neither the Tories nor Mandy have ruled out working together when Labour are evicted from power on 25th March).

I confess, I haven’t read the report cover to cover and it might seem a little patronising but it was written by Denise Taylor (Award winning career coach and author of ‘How to get a job in a recession’) and not Mandy (though his Business Innovation and Skills department did produce it). Denise’s credentials as a chartered psychologist and MBA are substantiated by her experiences working with organisations ranging from Vodafone to Christian Aid. All this and from her Tweets (@amazingpeople), it would appear that she even reads NME so she can’t be all bad. In fact she’s probably better qualified than most to write such a guide and I suspect that BIS are merely endorsing it and giving her a platform.

The glaring omission from the report itself was obviously not to mention WEXO in the Useful links section. Joking apart though, the government’s shortcomings are better demonstrated by their failure to research and support private sector initiative and their tendency to try to do things (badly) themselves. We are actively promoting their BIS and LDA programmes to subsidise companies taking on interns and promote paid graduate endeavour (email info@wexo.co.uk for more details). But their own vehicle for promoting it probably cost the tax payer unnecessarily. As DWMC says “First up, we had the much-slated Graduate Talent Pool (“Wow, a load of unpaid internships – that’ll help pay off my £15k of debt…”). This is the very vehicle that could simply have combined private sector initiatives and reduced graduate unemployment with the investment allocated to incentivising companies to open their doors and remunerate them.


Robin Kennedy

Inspiration and Investment



Good morning…

Happy Birthday Sir Paul McCartney – 66 today…

All well in WEXO’s world as we approach signing up our target of 100 Godfather companies and append functionality before going live to users.

Excitingly, you can now see our first WEXO interviews with Captains of Industry in association with t5m.com’s new Prince’s Trust Channel: http://www.t5m.com/the-princes-trust (Download Silverlight on t5m to view).

I spoke with Lord Young (one time Cabinet Minister and FTSE 100 Chairman and ever active start-up investor), Lloyd Dorfman (Founding Chairman of Travelex), James Caan and Deborah Meaden from Dragon’s Den and Ex-Apprentice Tim Cambell amongst others. They share their inspirational experiences and advice for those trying to ‘get on’.

Interviews can also be seen at http://uk.youtube.com/user/the5thmedium and will soon be available here…

Otherwise, we’ve been embroiled in development and closing our angel investment round hence the radio silence but I have been inspired to put the following together for our final potential investor:

News out this morning that Bain Capital Ventures have bought a strategic 5% stake in LinkedIn for $53m in 4th round financing implying a valuation of $1Bn

http://www.latimes.com/business/la-fi-linkedin18-2008jun18,0,6631759.story

Claiming 23m users and calling themselves “professional networking” (an apparent sub-section of our term ‘utility networking’), LinkedIn claims to have relationships with executives from all FTSE 100 companies and to be able to generate revenues of $100 million this year from: premium subscriptions, blue-chip advertisers, job listings and corporate services – a much more diverse revenue base than e.g. Facebook’s advertising driven model.

This is clearly encouraging in that it highlights the appetite for Web 2.0 (and – new term – “Enterprise 2.0″) investments in an otherwise limited investment space. We have always seen LinkedIn as our closest benchmark but are spurious as to its potential in Europe with its:

* clunky interface
* focus on paying ever increasing sums of money to open up the 6 degrees of separation
* inability to engage the ‘digital natives’ / ‘generation-e’.

We obviously prefer our more niche focus on work experience in the UK whilst:

* encouraging growth based on incentive / reward
* engaging companies themselves as opposed to just (but as well as) myriads of their employees
* focusing on smaller companies and increasing ’stickiness’ through e.g. video interviews

VALUATIONS: Might sound a bit like the old price/sales or even price/click of the tech bubble but people now seem to be focusing on price/user (P/U). So (ignoring that UU’s can arguably be divided by up to multiple of 4):

* LINKEDIN (TODAY): On this implied valuation of $1Bn LinkedIn’s 23m users are worth $44 each.
* BEBO (2008): AOL paid $850m for 40m users implying P/U of $21.25
* FACEBOOK (2007): Microsoft’s strategic 5% stake in Facebook implied P/U of $300
* MYSPACE (2005): Newscorp paid $580m for 21m users implying P/U of $27.62

Our own implied valuation remains confidential…