Another high-tech company bails out of town (Austin: sale, tech jobs)

[nomore07]

Austin Loses More Than Just Another High-Tech Company in LifeSize Sale › The Sage Closer

[OneJackson]

Ouch

[inthecut]

That was a great blog post..I read most of it and the comments...very perceptive blogger as well...

My two-cents?.....You live and die with venture capital....that company was controlled the whole time by the outside venture cap investors. When they decided the time was ripe, they "flipped" the company and made their bucks. Now, why did they not stay in Austin? Because they invested in the company TO flip/sell it, and evidentally, no larger company here in Austin had the bucks or wherewithal to purchase the same.

The ultimate question is how Austin can retain those mid-sized firms when they are ripe to be sold by Angel investors. Perhaps we need our OWN angel investment groups, that would have more commitment to keep companies in our local metro. I think there is too much outside money in the tech mid-sized company game here, and you live and die by the sword when you sell your soul to their pocketbook. They are only in the game to make money, and quick......

Last thing...Austin has grabbed many outside firms/companies over the years. That does not mean they are immune from being grabbed themselves, ala bigger fish. And, scariest of all, there are no unions or guarantees in the tech industry, and the entire Austin tech industry could conceivably leave enmasse per offshoring/outsourcing/bigger fish, and we would have no local control over the same at all......something to think about!

[woodinvilleguy]

Just because a company is owned by a company in the bay area doesn't mean it will close. My company HQ is in San Jose, and our office has continued to grow over the last 10 years.

[inthecut]

Originally Posted by woodinvilleguy

Just because a company is owned by a company in the bay area doesn't mean it will close. My company HQ is in San Jose, and our office has continued to grow over the last 10 years.

True, but it could leave tomorrow as well...nil to no local commitment in this economy, even more so with tech. Jobs can also be offshored at anytime to India or whathaveyou, per cheaper labor costs...if someone can be hired for 10K a year, and do the same quality work as someone making 80-100K here, there will always be the temptation to ship the job itself overseas as well.

Tech jobs are the ultimate wild card, and, being untethered per fixed in place costs, unlike factories of old, can ship entire divisions/companies out of area/country with the flick of a pen....