Silicon Valley is Not About Startups Anymore

Silicon Valley is no longer the best place to start a company … It’s a wonderful place, but it’s a very challenging one also. So if you’re starting something today, DO NOT come to Silicon Valley right away. It’s less expensive, less risky, and probably easier to start somewhere else, due to less competition. Get some level of product-market fit first, get some early traction; then — if you need it — raise some money where your network is stronger (again, guess where that is) and *only then* think about getting to the next level and moving to Silicon Valley.
~ Silicon Valley has evolved — it’s not about startups anymore

See also:

  • Top 10 Myths of Silicon Valley
  • Silicon Oligarchs’ Double Standard
  • Silicon Valley’s Dirty Laundry May Get Aired
  • Systemic Arrogance has Become Part of Silicon Valley’s Newer Public Narrative
  • Silicon Oligarchs’ Double Standard

    … the new generation oligarchs are very different from the traditional “propeller heads” who once populated the Valley. More media savvy and less dependent on manufacturing, the new leaders have less interest in the kind of infrastructure and business policies generally favored by more traditional businesses. They also tend to have progressive views … that align with the gospel of the Obama Democratic Party… the Silicon Valley– San Francisco corridor, has become one of the most solidly liberal regions in the country. The leading tech companies, mostly based in the area, send over four-fifths of their contributions to Democratic candidates…
    … despite its counter-cultural trappings and fashionably progressive leanings, Silicon Valley has turned out to be … greedy … wages for the region’s African-Americans and Latinos, roughly a third of the local population, have dropped, down 18% for blacks and 5% for Latinos …
    …. The poverty rate in Santa Clara County has climbed from 8% in 2001 to 14%, despite the current tech boom; today one out of four people in the San Jose area is underemployed, up from 5% a decade ago. The food stamp population in Santa Clara County has mushroomed from 25,000 a decade ago to almost 125,000. San Jose is also home to the largest homeless camp in the continental U.S., known as the Jungle
    … Google maintains a fleet of private jets at San Jose airport… Google executives touts its green agenda but have burned the equivalent upwards of tens of millions of gallons of crude oil, …
    … individuals like Bill Gates have voiced public support for higher taxes on the rich, yet Microsoft, Facebook and Apple have all saved billions by exploiting the tax code to shelter profits offshore. Twitter’s founders creatively exploited various arcane loopholes to avoid paying taxes on some of the proceeds of their IPO that they set aside for heirs…

    ~How Silicon Valley Could Destabilize The Democratic Party Bu Joel Kotkin. Forbes.

    See also:

  • Who is Who – Political Leanings – in Silicon Valley
  • San Francisco as a Capital of the “Left Coast” of America
  • The Democratic Billionaires Club’s double-standard

     

     

  • Who is Who – Political Leanings – in Silicon Valley

  • Marissa Mayer. The Yahoo CEO is as reliably Democratic as they come.
  • Sergey Brin Mayer’s onetime boss, Google co-founder … donations to the DNC and the Obama campaign make it clear which of the two parties he likes better.
  • Reid Hoffman … LinkedIn co-founder and current VC gave $1 million to Priorities USA Action, an Obama-supporting super-PAC, in 2012… he’s a down-the-line liberal.
  • Mark Zuckerberg… palled around with President Obama during the last campaign cycle, and his No. 2 at Facebook, COO Sheryl Sandberg, is a longtime Democratic donor…
  • Sean Parker …first chairman of Facebook is also a Democratic donor …
  • Peter Thiel … [PayPal co-founders] … is the libertarian godfather of Silicon Valley…
  • Jeff Bezos … Amazon’s founder … described … as a libertarian in a March 2012 profile…
  • Marc Andreessen… well-known venture capitalist shocked everyone by supporting Mitt Romney in 2012 after a lifetime of backing Democrats… he says, “I turned 40 last year and so I figured it was time to make the switch“… [“If you’re not a liberal at twenty you have no heart, if you’re not a conservative at forty, you have no brain” ― Winston Churchill]
  • Meg Whitman … HP… cut a six-figure check to a Romney-supporting super-PAC…
    ___
    Silicon Valley is still a liberal stronghold, and the employees of large tech companies tend to support Democrats by a tremendous margin. (Apple employees, for example, gave 91 percent of their campaign contributions last cycle to President Obama.) …
    ~The Political Leanings of Silicon Valley By Kevin Roose.

    See also:
    ~Google vs. Evil
    ~Silicon Oligarchs’ Double Standard
    ~San Francisco as a Capital of the “Left Coast” of America
    ~Silicon Valley hiring practices gets class action status

  • Top 10 Myths of Silicon Valley

    By Elaine Wherry

    1. Technology Makes It Possible to Start a Company Overnight… launching a product is just the beginning… finding a problem worth solving, educating users, building traction, developing a viable business strategy, training a sales team, and securing long-term funding takes time…
    2. You Only Pivot When Your Idea is Bad… The Internet reinvents itself every two years. Even if you are successful today, technology changes so quickly that you can lose success just as quickly as you gained it …
    3. Being a Founder is Glamorous… most founders spend 40% of their time hiring… founders can’t loosen the reigns until they’ve hired and trained the first 50 team members…
    4. Founders Don’t Have Bosses… Sadly, it’s just not true… entrepreneurs are also accountable to the Board of Directors who determine whether the founders are fulfilling their roles… accountable to the market and the market is the craziest, most irrational, and unfair boss of them all.
    5. The Best Product Wins. Product design can be a formidable advantage… Most companies excel at experimentation rather than product execution…
    6. VCs Throw Money at you… average American startup team reaches out to approximately 60-120 VCs and angels to raise the first $1M …
    7. An Acquisition Means You’re a Multi-Millionaire… It’s possible for an acquisition in the hundreds of millions to leave nothing for the founders depending upon how much has been raised, how much was allotted to employees, the number of founders, whether the exit included stock or cash, and the liquidation preferences…
    8. Raise as Much Money as You Can… only take the money you need (with some cushion) to prove the next stage of your business…
    9. If You Do Everything Right, You Will Be Successful. There is no magic formula. Many smart startups will fail and many foolish ones will somehow succeed. Luck plays a huge hand in a startup’s ultimate outcome… a 93% failure rate…
    10. We’ll Always Have These OpportunitiesRead more: http://www.ewherry.com/2014/08/10-silicon-valley-myths/?utm_content=bufferbc1a7&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

    Silicon Valley’s Dirty Laundry May Get Aired

    In a forceful slap at both the industry’s casual attitude toward employment laws and risk-averse lawyers who decline to push strong cases to trial, a Silicon Valley judge on Friday took the highly unusual move of rejecting the settlement in a class action accusing tech companies of agreeing not to solicit one another’s employees… [Lucy H. Koh of United States District Court in San Jose] also said … that Steve Jobs, Apple’s late chief executive, was “a, if not the, central figure in the alleged conspiracy.”
    ~ Judge Rejects Settlement in Hiring Suit Against Google, Apple and Intel, by David Streitfeld. NY Times.

    See also: Silicon Valley hiring practices gets class action status

    Start-up Experts & Services Market is Booming

    Start-up euphoria is the first Gold Rush of 21st century. As any Gold Rush in past, it creates the infrastructure, where service market is booming first:

    Elaine Pofeldt How To Create A Startup Hub. It’s fun to launch a startup … But if you’re starting a business in a town or city that isn’t known for creating the next Snapchat or Oculus VR, it can get a little lonely. So how do you actually pull off the advice in Brad Feld’s popular book on the subject, Startup Communities? Read more: http://www.forbes.com/sites/elainepofeldt/2014/07/31/how-to-create-a-startup-hub/

      The idea that a nest of complex adaptive systems can be managed by a paint by numbers manual is triumph of hope over experience.

    Any kind of the gold rushes were always based on the “triumph of hope over experience“:

      People eager to take part in 2nd “Gold Rush”. So,market responds. Who profit the most from Gold Rush of 19th century? Not miners

    See also: From the Gold Mines of El Dorado to the “Golden” Startups of Silicon Valley

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