Cristina Morgan, Managing Director and Co-director
of Investment Banking, Chase H&Q
Our special guest today is Cristina
Morgan, Managing Director of Chase H&Q, Ms. Morgan
is responsible for all of the company's investment banking
activities, and since 1992 she has also had responsibility
for all of Chase H&Q's electronics and technology equity
financings. In her own practice, Ms. Morgan concentrates
primarily on companies in the software industry where
she has served on the Board of Directors of Frame Technology
and Visigenic Software and currently serves on the Board
of Evoke.
Moderator: Ms. Morgan has a BS and received
an MBA from Arizona State University and has been recognized
by "Working Woman" magazine as one of the Top Ten Women
in Technology.
We are honored to have Cristina with us today. Welcome,
Cristina we are glad to have you with us!
Cristina:
Thanks, Kristine.
Moderator: Before I take a question
from the audience, can you tell us how you first entered
this field?
Cristina: I joined
H&Q in 1982 as a research analyst covering the software
industry. I had worked at Memorex, Itel and Qume Corporation
for 5 years in financial planning/strategic planning before
that. I transferred to the investment banking division
of H&Q in 1985 because I found that my skills were best
practiced on the corporate issue side as opposed to the
institutional market side.
guest-Diane asks: What do you
feel has been the most important factor in your success?
Cristina: Liking what
I do and working hard.
Moderator: Well that seems simple enough. But
we know better!
guest-Roberta asks: Do you see
any barriers as a woman in your field?
Cristina: No - it's
a producer's world. If you are successful in bringing
in business and sound in your judgment of quality companies,
you are successful.
Moderator: That's encouraging to all those wanna'
be girl geeks out there.
Cristina: It doesn't
really matter if you are male or female - results are
everything in this business.
Moderator: Very true
guest-dengy_berrengy says: How
has the software industry changed In the past 20 years?
Cristina: Well, first
of all, when I started covering the industry, there were
less than 20 public software companies.
Moderator: Amazing.
Cristina: There are
probably thousands by now. And of course the internet
has transformed the industry and accelerated the growth
exponentially.
Moderator: And it sounds like you have been at
the forefront, have seen many changes, and have some remarkable
perspectives.
guest-dengy_berrengy says: What
are some requisites for companies you are considering?
Cristina: Triple'
digit growth, huge markets, sound management teams with
vision and commitment, great backers - all the usual.
guest-Adorable says: When growing
up did you have a desire for technology?
Cristina: No- I thought
I was going to work in the theatre. Surprise surprise.
Moderator: The theatre?! What happened? That
is fascinating.
Cristina: I wasn't
good enough.
Moderator: As an actress?
Cristina: Or a singer,
or a set builder.
Moderator: Well, I have mentioned that you remind
me of Katharine Hepburn's character in "The Philadelpha
Story"!
Moderator: But for GirlGeeks sake, we are glad
you are a technologist!
guest-Zelda says: What kind
of a leader are you? How do you set the culture of those
that you work with/around at H&Q?
Cristina:
I'm a big believer in the "sorcerer's apprentice" model.
I just do what I do and invite people to come with me.
We have a great bunch of clients and we learn as much
from them as they do from us.
Moderator: Is that a unique approach in the
investment' banking industry?
Cristina: I don't
think so - although the bigger firms are much more bureaucratic
and don't let the junior people anywhere near the clients.
We're far more inclusionary and it trains people to think
on their own much earlier.
Moderator: Yes we agree that this approach works
well!
guest-Zelda says: Describe
the differences (in your opinion) between a 1999 MBA graduate
looking for a job and when you first got started pounding
the pavement.
Cristina: 99 MBA's
have more choices - everything is much larger and more
robust today. Even venture capitalists are hiring MBA's
now - they weren't in the mid-70's. Also, everyone seems
to be starting their own business even before they get
out of biz school.
Moderator: Too true!
guest-dengy_berrengy says: How
would a typical Silicon Valley entrepreneur describe you?
Cristina: Helpful,
funny, straightforward...I hope.
Moderator: That is certainly how we would describe
you here at GirlGeeks as well.
guest-pscrosby says: What's
the biggest mistake most technologists should avoid in
looking for funding today?
Cristina: Realize
that most VC's have hundreds if not thousands of business
plans to sift through. If you want to get to the top of
the list, you'd better have a personal connection with
someone. You can't just send it in and hope for the best.
Moderator: Yes, you have to be remarkably persistent
and resilient.
guest-dengy_berrengy says: What's
a common mistake young investment bankers make?
Cristina:Thinking
that the best investment bankers and the ones that make
the most money. The best investment bankers are the ones
who know a good company from a bad company and there aren't
very many of those.
guest-Zelda says: Who would
play you in a film about your life?
Cristina: Susan Sarandon
Moderator: Great!
Moderator: Cristina, we took a poll here at
GirlGeeks and Susan Sarandon to play you won hands down!
guest-dengy_berrengy says: What's
your all-time favorite software?
Cristina: Probably
Siebel's sales automation software — we're using
it here at Chase H&Q now and it's a big help in a
complex business. But I love all software that builds
great companies.
guest-Adorable says: What
were some of the things that helped keep you motivated
and focused?
Cristina: There's
no problem with that - in this business you can't do anything
else but work so I have nothing to distract me from that.
guest-pscrosby says: Investment
Banking has a reputation as a very hard lifestyle that
few people can survive let alone thrive in long-term;
what's your secret?
Cristina: I don't
do anything else - no kids, no dogs (right now anyway),
no hobbies, a self-sufficient husband. Also, my clients
are often my friends, so that's fairly efficient. And
everyone is right about the hard lifestyle - that's why
most people don't last.
Moderator: You certainly are focused!
guest-Jazninja says: Did you
have any setbacks in life that you used as a stepping-stone?
Cristina: Sure - I
was a military kid and moved all the time so was always
the new kid - taught me that you can succeed anywhere
even though it seems awful at the time. Also, in 18 years
of investment banking, there have been plenty of wrong
bets on companies. Every mistake you make in this business
makes you a better investor in the long term.
Moderator: You learned to adapt then at a very
early age. And coming from a military background, what
inspired you to go into theatre?
Cristina: I was in
a play and musical in school. I thought I could make a
living at it. I was wrong. So I stopped worrying about
it.
guest-Zelda says: How is Internet
business models impacting traditional business models
in your field?
Cristina: On the brokerage
side, it will impact it significantly, but the origination
side is still a very personal business. Naturally, all
of the advances in interpersonal communications and the
increased access to information make life both better
and worse. As I'm sure everyone's noticed, the more available
info there is, the less free time you have.
Moderator: Yes, we have noticed that around
here!
guest-coco says: Do you see
a difference in the type of entrepreneur that you see
today compared to what you saw 2-3 years ago?
Cristina: In general,
they're younger, although there's a huge trend for the
27-year-old CEO's to bring in some gray hair to help them
and in some cases replace themselves. They're still smart,
hard working and will eat dog food before they will fail.
Moderator: Oh that's priceless. dog food!
guest-coco says: When you
look to funding, do you gravitate to a certain type of
company?
Cristina: Same as
above - huge growth rates, huge markets, huge gross margins
(or possibility to get there) and people you can trust,
like and live with for a long time.
guest-Zelda says: Describe
a significant moment in your career that you look back
on now and wish you "would have known then".
Cristina: I actually
have been fairly lucky. Even my tough situations have
ended up teaching me something valuable. There are a lot
of companies I should have backed and didn't and some
I did I shouldn't have, but it's sure hard to complain
from here.
Moderator: Can you mention any examples?
Cristina: Did Informix
instead of Oracle, did Gupta instead of Power soft - turned
down a number of successful IPO's - again, nothing to
whine about.
Moderator: Good attitude!
guest-Zelda says: How do you
keep those working with you as competitive and focused?
How do you determine the culture of the people you choose
to work with you? Keep the morale up, so to speak?
Moderator: I believe Cristina had to take a
phone call...we'll be right back!
Cristina: The people
who apply to this business are extremely competitive and
focused - it's a self-selecting business. They either
love it or leave it.
Moderator: Very true Cristina! Well, we are
just about out of time, one last question before we ask
Cristina for parting words...
guest-Zelda says: If you retired
tomorrow...and were banned from Investment banking, technology
and the corporate world at large...what would the first
day after you retired be like?
Cristina: I'd sleep.
Moderator: That got a laugh! Thanks Cristina for
joining GirlGeeks Chat today. We know you are busy and
appreciate your time. A Special Thank You to Cristina
Morgan for chatting with us!
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