This morning Alan Taetle spoke to a nice crowd at the TAG/ATDC Entrepreneurs Society on the state of venture capital funding in the Southeast.  It’s hard to believe that I have known Alan for over 12 years since he hired me in the early days of MindSpring.

First and foremost Alan talked a bit about the types of companies Noro Moseley invests in.  The real short story is Noro Moseley, likes to be first institutional money in early stage, early growth technology, healthcare and business service companies in the Southeast.

Alan then went on to discuss the state of venture investing on the South, or "what keeps him up at night." 

Big concerns on the national front.  Silicon Valley’s share of venture investment is growing, thus far in 2007 reaching over 50% of the total invested for the first time in several years.  He is also a bit worried that early stage venture capital investing is currently out of favor with big institutional investors.

Alan thinks Atlanta has a lot going for it.  A strong Internet security ecosystem, a good stock of serial entrepreneurs, interest by national VCs in the region (Sequoia was even in town last week), emerging strength in new media and alternative energy industries, forward thinking companies such as Turner, Synovus, and Weather.com showing some leadership, and a great university system.  Many of the things I have discussed before.

He also thinks we have some issues.  Over the past few years we have lost a slew of companies to acquisitions, and lack institutional capital in the region.  Again, right on both counts.

Of course the most interesting thing Alan talked about what needs to happen to change th    ings.  Here’s his list:

1.  Create the next set of flagship companies.  He used to think EarthLink would lead that charge.  Not thinking that anymore.
2.  Re-engage the ‘one hit wonder" executives.
3.  Companies and those that invest in them need to be patient enough to wait for the IPO, focus on building a great enduring company not on a near-term exit.
4.  Remove the stigma around partial founder liquidity during institutional investment rounds so that founders are not running scared and can be patient.

Alan stated that Noro Moseley was looking to take care of the last point in the companies that they invest in and in a somewhat rare show of candor in a room full of people stated that Noro aspires to be Austin Ventures. 

I don’t know much about that, but if you are looking for a smart venture capitalist to sit on your board, Alan would be a guy to reach out to.