Bang These Investment Drums Quickly - Simon Applebaum - MediaBizBloggers

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Venture capitalists and angel investors have billions of dollars at their disposal to fund the next great adventures in television programming and technology. Year after year, however, they direct little more than a pittance in those directions, compared to other industries, despite opportunities smacking right into their faces, such as video-on-demand, interactive TV, HDTV and 3D TV.

Part of what's behind this annual exercise in frustration – that's frustration among new TV ventures worthy of big VC/angel investments – is the reluctance of television trade associations to do what other industries do on a frequent basis. With the exception of CableLabs and the Consumer Electronics Association, TV trade groups from NAB to NCTA and American Women in Radio/TV don't approach VCs or angel investors and advocate loud and strong for new venture investment. Out of sight, out of the game, the VC/angel community concludes.

Now there's a pair of developments that came to light last week, which could turn this tide. Let's say this up front, before one word about them specifically. These developments will be tide-turners if, and only if, industry trade groups collectively get behind them.

First up is Intel's "Invest In America Alliance," showcased at a Brookings Institution event in Washington, D.C. There, Intel CEO Paul Otellini declared his company, together with 24 venture capital firms, will spend at least $3.5 billion over the next two years on U.S.-quartered new companies. A number of Silicon Valley-based VC heavyweights, including Draper Fisher Jurveston and Kleiner Perkins, are in this consortium. Intel itself, through its corporate VC unit, will contribute $200 million to this kitty.

At the same time, a second Intel-led association of companies will increase their hiring of college graduates, in some cases double or more, over that two-year time span. Companies involved include Yahoo, Google, Microsoft, Cisco Systems and Liberty Mutual.

Both partnerships leave the door open for additional company participation, so there's the prospect of additional funds beyond the $3.5 billion promised here.

"Strong, enduring companies grow out of a culture of investment and commitment to innovation," Otellini told his Brookings audience. "We simply must have a clear, consistent strategy to promote innovation, investment and start-up companies. There are things business can do, and ought to do, independent of what government achieves."

Initial reports about this venture suggest the focus of this spending will be on clean tech, IT, bio and nano techs. Yet remember this: Intel is now a force with interactive TV, co-supervising the Widget Channel project with Yahoo and getting applications into places like FiOS TV. Intel Capital is a big investor in TransGaming, an interactive videogames on TV service aimed at the cable industry. And Intel will be exhibiting at The Cable Show from Los Angeles in May.

Three good points behind why every industry trade group should get on the horn with Intel and its VC allies for a role with "Invest In America," urging that new TV ventures, both content and tech, not be left out of the picture. In return, industry companies like Time Warner, Comcast, NBC Universal and Charter Communications can up the number of college grads they hire this summer and next.

ErGo Media Capital, a new division of big investment firm ErGo Ventures, is the other bright TV opportunity in play. Headed by former Cinetec Media co-founder Matt Littin, this New York enterprise wants to move new TV ventures forward, with up to $15 million available for specific projects. Film, video games, music and digital media are other fields in ErGo's sights. What's more, ErGo wants to partner up with local VCs and angel groups in some of its investments.

Together, this pair represents the best avenue in a long while for new TV ventures to capture a fair share of the billions VCs and angels spend annually. Only, and you can't declare it loud enough, only if the TV industry raises its voice on behalf of innovation.

Will it?

Until the next time, stay well and stay tuned.

Simon Applebaum is host/producer of Tomorrow Will Be Televised, the Internet-distributed radio program covering the TV scene. The program runs live Mondays and most Fridays at 3 p.m. Eastern time/noon, Pacific time over www.blogtalkradio.com. Tomorrow also is available on replay 24/7 at www.blogtalkradio.com/simonapple04, and on podcast, downloadable to any major mobile device, from 17 Web download sites arranged by www.sonibyte.com

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