Weather Tonight: 4°c Partly Cloudy Night Morning: 8°c Cloudy

Business

A funding worry to chew over

Simon Firth
27 Feb 2009


It's not your typical Silicon Valley career path. Nolan Bushnell, creator of Pong and co-founder of video game pioneer Atari, went on to launch the kids pizza mega-chain Chuck E Cheese, which now has over 500 locations worldwide.

There is a connection, though. The brilliantly sneaky idea behind Chuck E Cheese was to create a place for children to learn to love Atari's arcade games.

Bushnell has a new effort here along similar lines called uWink. Aimed at young adults and kids, the restaurant has multiple screens at every table upon which customers can order food and play team games. It's surprisingly fun and the food is just fine.

While others have connected technology with entertainment (like Steve Jobs with Apple and Pixar), it's less usual to throw food into the mix. Partly that's because Valley entrepreneurs pushing the edible over the digital tend to get the VC brush-off, although the Bay Area often leads the US in food trends.

Local smoothie mega-franchise Jamba Juice did persuade Benchmark Capital, backers of AOL, eBay and Palm, to invest. But entrepreneurial foodies here more typically turn to angel investors.

That was the route taken recently by former Google chef Charlie Ayers, who's looking to turn his new hit Palo Alto restaurant Calafia into a national chain. Other local franchises have built angel-supported empires around burritos, tex-mex and pearl tea with varying degrees of success.

Bushnell took the VC dollar with uWink. That's not helping the nascent chain, which has only three locations so far. News reports suggest he's under heavy pressure to pay back fast or fold.

Don't feel too sorry for Bushnell, though. Leonardo DiCaprio is signed to play him in a biopic called Atari, slated to open later this year.

* The rain has been pouring in California lately. But not enough, we're told. Climatologists still say we face a summer of water rationing. Cities are subsidising rain barrels, cisterns and “living roofs”. That means a nice boost for politically-popular “green” jobs in the home water-collection business.

* Three headlines pulled at random from this week's local business press: Ocarina Networks closes 2nd round with $20 million; Palo Alto-based Eiger BioPharmaceuticals raises $7.1 million; Appirio raises $10 million in 3rd round. All are local companies funded by local VCs. Valley life keeps trucking along.

Reader views (0)

 Add your view

No comments have so far been submitted.


Add your comment

 

Terms and conditions Make text area bigger You have  characters left.

We welcome your opinions. This is a public forum. Libellous and abusive comments are not allowed. Please read our House Rules.

For information about privacy and cookies please read our Privacy Policy.


 

 

  • Relief for Sir Mervyn as inflation takes a tumble Osb and mervyn Bank of England Governor Sir Mervyn King has gained a major victory in his battle to bring down the spiralling cost of living as inflation...
  • Yell dives as print blow outstrips digital leap Yell Beleaguered Yellow Pages directories publisher Yell has seen its shares plunge as much as a quarter after a worse-than-expected slump in...
  • BHP and Rio bet on copper with mine expansion Rio Tinto The future is looking copper-coloured for BHP Billiton and Rio Tinto after the mining giants announced plans to invest $4.5 billion (£2.9...
  • Why saving may start to make sense again - just Piggy bank savings Long-suffering savers at last had some good news today when inflation fell below 4%, meaning there are now seven standard savings accounts...
  • City says timing wrong in Moody's UK rating threat Euro City economists have raised doubts over the timing of the threat by rating agency Moody's to slash the UK's AAA sovereign credit score,...
  • Hotel giant goes for Olympic gold as profits wow the City Intercontinental Hotels Hotelier InterContinental Hotels is looking to emerging markets and especially China to drive future growth
  • Bloomsbury takes a new passage to India Fashion book Publisher Bloomsbury is to set up a new business in India to take advantage of rapidly growing demand from the country's English-speaking...
  • Thai disaster floods Lloyd's with a bill for £1.4 billion Lloyd's of London Thailand's worst flooding in 50 years last October will cost the Lloyd's of London insurance market $2.2 billion (£1.4 billion), it has...
  • Bank of Japan increases stimulus to boost growth Japan Bank of Japan has added 10 trillion yen (£83 billion) to its 20 trillion yen pool of funds set aside for asset purchases in a surprise move
  • Brammer sees profits jump Box of tricks: DIY tools can be expensive to buy Industrial services group Brammer has posted a 41% jump in full-year pretax profit on strong demand
  •  
    Market Roundup
    TUESDAY UPDATE

    Valentine's massacre as City dumps Hampson

    No one likes getting rejected on Valentine's Day

    More