I don’t want to be the nitpicker but I think two investments over the last week really emphasize the difference between the UK and the US investment environment.

In the US, the $41 million investment in Color has rocked the media airwaves. The best of VCs, Sequoia, Bain, SVB, have invested in a picture sharing mobile app? However, as the CEO Bill Nguyen has emphasized, they are far from being just another pic sharing app. On the contrary, he claims, they are a research centric company with multiple patents looking to merge location, proximity, pictures and social. ‘An elastic social graph.’

The jury is divided:

Is this another example of the potential bubble we are seeing in early stage investments?

Or

Is this another example of the vision of US VCs investing in great technology, not to address current needs and markets, but to address needs and desires that we didn’t know we had and thus generate new markets from scratch?

In the UK, at the other end of the scale, is a £50 million investment by Lyceum Capital in Access, a business management and accounting software firm. They have £28 million in turnover with EBITDA of £5.5 million and provide ERP software, financial management systems and HR solutions to a mid-market clientele. A safe, stable, reliable investment. No cutting edge research or technology. Not even a mention of current or potential SAAS based delivery of services. Another one of tens of little shops dotted across the landscape, it’s a wonder they are still surviving in spite of the onslaught of Eastern European and South Asian software houses.

The firm has various awards for best place to work and for their financial software. Let’s hope the investment helps move them from a staid product profile to a more futuristic delivery of services.

So, in summary, what is the difference? The visionary risk taking nature versus the risk averse, past performance based approach.

But, I shouldn’t be too harsh.....it is changing......hopefully......