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Where in the world is the UK's silicon valley?

Defenestrating the UK tech scene

In an over-heated startup environment where networking events, coffee mornings and [gulp] webinars abound it's key to stay mindful of Sturgeon's Law: "Ninety per cent of everything is crud".

We've been here before. The first dotcom boom was a fine validation of Mr Sturgeon's pessimistic stance. Some strong businesses made it to shore on that first wave – mostly glamour-free services like ISPs and security firms. At the webbier end of the spectrum that concerns us, Lastminute.com, gadget retailer Firebox.com and several gambling sites made it through as independents while a thousand others floundered.

Oh yeah, The Reg is still around too.

In a column for PC Mag at the beginning of August, veteran US tech pundit John C Dvorak predicts another bust: "Every single person working in the media today who experienced the dot-com bubble in 1999 to 2000 believes that we are going through the exact same process and can expect the exact same results - a bust... Today everything from YouTube to the local church has a social-networking angle. And this doesn't even consider the actual social-networking sites, from MySpace to LinkedIn to Facebook to even Second Life. This scene is totally out of control and will contribute to the collapse for sure."

Not quite every dotcom survivor sees the same pattern. Mike Butcher, the former editor of dotcom flag-waving mag The Industry Standard, and New Media Age told us: "There isn't so much public money involved this time round. You won't see granny's pension fund being invested in an internet startup."

"If a VC loses their shirt, that's their business. It's what venture capital is all about – it's a venture." Butcher has set up Bitesmedia with the aim of channelling the "pitch hell" of many startup events into a more meaningful discussion.

"In the past in Britain, people in business didn't want to get their hands dirty with people who can code – not the Silicon Valley mindset. That's changing and it's what was meant to happen with the dotcom boom but didn't quite."

The Rt. Hon. Minister for YouTube

What about government support? The newly minted departments for trade and industry might do better (we'll give them the benefit of the doubt) but so far, when it comes to technology, our politicians often prefer not to let facts, or indeed issues, get in the way of a good story. Meaningful discussion gives way to posturing.

Having failed to engage with da yoof via every medium ever, both main parties have claimed to be convinced that YouTube and Facebook are the tools they've been waiting for to involve the Kersal Massive in public discourse. Before his promotion to glory in the Foreign Office, Labour's David Miliband was engaged in a battle royale with the opposition to decide who gets social networking the most.

Cameron might have a blog, but Miliband clearly gained the initiative with this recent nonsense by channeling conference magnate Tim O’Reilly:

Instead of citizens acting in isolation, unsure of whether their actions are reciprocated by others, feeling powerless in the face of large organisations and global change, citizens can feel part of a bigger project. They can create a shared willingness to act, their preferences can be aggregated, and can give rise to collective action as well as collective discussion.

Cynics would suggest this is the internet equivalent of Gordon Brown proclaiming himself an Arctic Monkeys fan. Serious lamenters of the lack of government support around new technology might be less charitable. It shows UK tech entrepreneurs they’re on their own, as it ever was, and probably should be.

Scene, not heard

Anyone looking for the kind of blog-walled echo chamber which self-sustains and promotes the current crop of cruddy Valley internet ventures is still going to have a hard time. Equally, good ideas have as decent a shot now as they ever have.

Perhaps we're best off this way. If the Great Californian Web 2.0 dungheap collapses we’ll doubtless suffer but at least the stench of community-wide failure won't carry. Or perhaps it won't collapse but continue to fester long-term – we don't know which is more scary.

Being left alone by hypesters to focus on building a business might be the best chance the likes of Blinkx, Skinkers, and the rest have. If not, after a long hiatus, First Tuesday is starting again in September. ®

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